What is one of the main objectives of the Life and Health Insurance Guaranty Association?

What is one of the main objectives of the Life and Health Insurance Guaranty Association?

• A. Promoting new insurance products
• B. Ensuring policyholders receive coverage despite insurer insolvency
• C. Decreasing insurance premiums for consumers
• D. Providing training programs for agents

Answer: (B)

One of the main objectives of the Life and Health Insurance Guaranty Association is to ensure that policyholders receive coverage despite the insolvency of their insurance companies. This is a crucial function because it protects consumers in the unfortunate event that an insurance provider cannot meet its financial obligations. The association steps in to provide a safety net, which ensures that policyholders can still access the benefits promised in their policies, thereby preserving the trust in the insurance system. This protection is particularly important in maintaining stability and confidence in the insurance market, which ultimately benefits both policyholders and the industry as a whole.

One of the main objectives of the Life and Health Insurance Guaranty Association is to ensure that policyholders receive coverage despite the insolvency of their insurance companies. This is a crucial function because it protects consumers in the unfortunate event that an insurance provider cannot meet its financial obligations. The association steps in to provide a safety net, which ensures that policyholders can still access the benefits promised in their policies, thereby preserving the trust in the insurance system. This protection is particularly important in maintaining stability and confidence in the insurance market, which ultimately benefits both policyholders and the industry as a whole.