Understanding Florida Insurance Guaranty Association

Insurance policies are designed to provide financial assistance in times of need. Be it a medical emergency, natural disaster or any other unfortunate situation, insurance policies can provide the necessary resources to get through it. However, there may be instances where an insurance company goes bankrupt, leaving the policyholders in a state of chaos. This is where the Florida Insurance Guaranty Association (FIGA) comes into the picture. In this article, we will discuss the role and importance of FIGA in the state of Florida.

What is the Florida Insurance Guaranty Association?

The Florida Insurance Guaranty Association is a non-profit organization that was created by the Florida Legislature in 1970. This organization serves as a safety net for policyholders in the state of Florida. It is a safety net that provides protection to policyholders if their insurance company becomes insolvent. The purpose of FIGA is to ensure that policyholders do not suffer any financial loss if their insurance company fails to fulfill its obligations.

The Florida Insurance Guaranty Association is funded by insurance companies that are licensed to operate in the state of Florida. These companies are required to pay an assessment to FIGA every year, which is used to fund FIGA’s operations. The assessment amount is based on each insurance company’s premium volume and the types of policies they write. By paying the assessment, the insurance companies are contributing to a fund that will be used to protect policyholders in the event of an insurance company’s insolvency.

What Does FIGA Cover?

The Florida Insurance Guaranty Association provides coverage for certain types of insurance policies. These policies include:

Note that the coverage limits listed in the table are the maximum limits that FIGA will pay out for each policy. Additionally, these limits are subject to change based on the type of policy and other factors. Policyholders should contact FIGA directly for more information on coverage limits and eligibility.

How Does FIGA Work?

If an insurance company in Florida becomes insolvent, FIGA will step in to provide coverage to affected policyholders. Policyholders should first contact their insurance company to confirm that they are indeed insolvent. Once confirmed, policyholders can then file a claim with FIGA.

FIGA will review the claim and decide whether it is eligible for coverage. If the claim is eligible, FIGA will then be responsible for paying out the eligible portion of the claim. Policyholders should note that FIGA’s coverage is subject to certain limits, as discussed earlier.

FAQs

Q1. Can I file a claim with FIGA if my insurance company is still in business?

No, you cannot file a claim with FIGA if your insurance company is still in business. FIGA only provides coverage if your insurance company becomes insolvent.

Q2. Will FIGA pay out the entire claim amount?

No, FIGA will only pay out the eligible portion of the claim, subject to certain limits. Policyholders should contact FIGA directly for more information on coverage limits and eligibility.

Q3. How long does it take for FIGA to process a claim?

The processing time for a FIGA claim can vary depending on various factors. However, FIGA strives to process claims as quickly as possible while maintaining accurate and thorough reviews of the claims.

Q4. What should I do if my insurance company becomes insolvent?

If your insurance company becomes insolvent, you should first contact the company to confirm that they are indeed insolvent. Then, you should file a claim with FIGA. FIGA will review your claim and determine whether it is eligible for coverage.

Q5. How can I contact FIGA?

You can contact FIGA by phone at (866) 928-4310, by email at info@figafacts.com, or by mail at:

Florida Insurance Guaranty Association
P.O. Box 14249
Tallahassee, FL 32317

Conclusion

The Florida Insurance Guaranty Association plays a crucial role in protecting policyholders in the state of Florida. By providing coverage for certain types of insurance policies, FIGA ensures that policyholders do not suffer any financial loss if their insurance company becomes insolvent. Policyholders should take note of FIGA’s coverage limits and eligibility criteria and contact FIGA directly if they need to file a claim.