FIGA is part of a non-profit, state-based, statutorily-created system that pays certain outstanding claims of insolvent insurance companies. By paying these claims, guaranty associations protect policyholders and claimants.
State laws require that licensed property and casualty insurance companies belong to the guaranty associations in every state where they are licensed to do business.
A guaranty association system also exists in Florida for the life, health and annuity insurance industry; but they operate independently from the property and casualty system. This information concerns only the property casualty guaranty associations