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Does FWCIGA pay all claims of an insolvent insurer?

No.  FWCIGA is designed as a safety net to pay certain claims arising out of policies issued by licensed insurance companies and self-insurance funds.  FWCIGA does not pay non-policy claims or claims of individual self-insured’s, or other entities that are exempt from participation in the guaranty association system.

FWCIGA coverage is limited to licensed insurers and self-insurance funds (the members of the guaranty associations that, in turn, pay insolvency-related assessments.)  When a licensed insurance company or self-insurance fund becomes insolvent, the FWCIGA pays eligible claims; but a company does not have guaranty association coverage if it is writing non-admitted or unlicensed products, such as surplus lines or is a self-insurer covered in the non-admitted market.

These limits on guaranty association coverage are necessary to balance the need to provide a safety net to those who would be most harmed by the insolvency of their insurance company and keep the burden of providing the safety net at an acceptable level.