What does the Nevada Insurance Guaranty Association provide?

The Nevada Insurance Guaranty Association (NIGA) is established to protect policyholders in the event that their insurance company becomes insolvent. This means that if an insurance company cannot meet its financial obligations, the NIGA steps in to provide a safety net for consumers, ensuring that they can still obtain the benefits they were promised under their insurance policies. This mechanism is often referred to as "insurance for insurance," as it effectively covers the risk associated with the failure of an insurance company to meet its claims.

This association plays a critical role in maintaining consumer confidence in the insurance market, as it reassures policyholders that their claims will still be honored, even if their insurer goes out of business. The emphasis on protecting individuals who have purchased insurance products highlights the intention of the association, focusing on the stability and reliability of the insurance sector within the state.