What is the primary function of the Florida Insurance Guaranty Association (FIGA)?

The primary function of the Florida Insurance Guaranty Association (FIGA) is to protect policyholders in the event that an insurance company becomes insolvent. When an insurer cannot meet its financial obligations, FIGA steps in to ensure that policyholders are not left without coverage. This organization provides a safety net, guaranteeing that claims up to a certain limit will be paid, thus giving policyholders peace of mind knowing that their insurance claims will still be honored even if their insurer is unable to fulfill its obligations.

This role is particularly important in preserving the stability of the insurance market and providing a level of security for policyholders who rely on insurance for protection against various risks. The association's efforts are vital for maintaining consumer confidence in the insurance system, demonstrating its essential role in the landscape of Florida's insurance industry.