The National Conference of Insurance Guaranty Funds (NCIGF) is a nonprofit national insurance group that supports the United States’ property and casualty insurance guaranty funds.
An insurance consumer protection mechanism, property and casualty guaranty funds step in to pay covered insurance claims (which would otherwise go partially or entirely unpaid) of policyholders of an insolvent insurer at levels determined by state law. This ensures policyholders and claimants at greatest risk are protected from the most severe consequences of an insurer’s failure.
Guaranty fund limits vary from state to state but generally are capped at $300,000 for property-insurance policies.
Incorporated in December 1989, the NCIGF is made up of the property and casualty insurance guaranty funds in the United States, as well as the Virgin Islands and the District of Columbia.
A guaranty fund system also exists for the life, health and annuity insurance industry, but it operates independently from the property and casualty system.
The guaranty fund system that supports the life, health and annuity insurance industry is the National Organization of Life and Health Insurance Guaranty Associations (NOLHGA).