What is the purpose of the Connecticut life and health insurance Guaranty Association?

The Connecticut Life and Health Insurance Guaranty Association serves a vital function in providing a safety net for policyowners. Its primary purpose is to protect individuals who hold policies from potential losses due to the insolvency of an insurance company. If an insurance company becomes unable to pay claims or fulfill its obligations to policyholders, the Guaranty Association steps in to honor claims and cover policy benefits, ensuring that consumers are not left without the financial support they rely on. This protection fosters consumer confidence in the insurance market, knowing there is a mechanism in place to safeguard their investments in life and health insurance.

In contrast, providing additional training for insurance agents, regulating insurance company practices, and offering discounts on premiums are not within the scope of the Association's functions. While those activities are important in the overall insurance landscape, they do not align with the foundational purpose of protecting policyowners from insolvency risks.