What is the primary purpose of the West Virginia Life and Health Guaranty Association?

The primary purpose of the West Virginia Life and Health Guaranty Association is to provide claim payments for insolvent insurers. This association acts as a safety net for policyholders in the event that their insurance company fails to meet its financial obligations. When an insurer becomes insolvent, the association ensures that policyholders receive at least a portion of their benefits, thus maintaining a level of protection for consumers who may otherwise face significant financial losses. This function helps to uphold public confidence in the insurance industry by ensuring that consumers will not be left without coverage or compensation due to insurer bankruptcy.

The focus of the association is not on marketing insurance policies, regulating rates, or promoting awareness; rather, it centers on protecting policyholders by providing support in situations where their insurance provider can no longer fulfill its commitments. This highlights the importance of such associations in safeguarding the interests of consumers in the insurance marketplace.