What does the Maine Life and Health Insurance Guaranty Association provide?

The Maine Life and Health Insurance Guaranty Association is designed to protect policyholders in the event that their insurance company becomes insolvent. It ensures that individuals with life and health insurance policies will receive the benefits they are entitled to, even if the insurer is unable to fulfill its financial obligations due to bankruptcy or other financial difficulties. By covering claim payments of admitted insurers that are insolvent, the Association provides a safety net for policyholders, thus maintaining their trust in the insurance system and promoting stability within the insurance market. This function is vital for consumer protection, as it helps to mitigate the potential financial loss faced by policyholders in the unfortunate circumstance of an insurer's failure.