What is the purpose of the Texas Insurance Guaranty Association (TIGA)?

The purpose of the Texas Insurance Guaranty Association (TIGA) is to provide coverage for policyholders in the event of an insurer's insolvency. This is crucial because when an insurance company goes bankrupt, policyholders can lose their coverage and the benefits they are entitled to. TIGA acts as a safety net, ensuring that consumers do not face financial ruin due to the unexpected failure of their insurance provider.

TIGA steps in to pay claims on behalf of the insolvent insurer, thereby protecting consumers and maintaining trust in the insurance system. This assures policyholders that they will receive the benefits they expect, even in the unfortunate event that their insurance company fails.

While the other options may seem relevant to the broader insurance industry, they do not accurately reflect the primary mission of TIGA. The association is focused specifically on safeguarding policyholders' interests during situations of insolvency, rather than providing financial assistance to companies, regulating premiums, or investigating complaints against agents.