An organization to guarantee payment of claims if a carrier goes bankrupt.
The Indiana Insurance Guaranty Association (IIGA) was created under IC 27-6-8-1 to provide a mechanism for the payment of “covered claims” due to a carrier insolvency. The IIGA responds when a Final Order of Liquidation to which there is not further right of appeal has been entered against the carrier by a court in the state where the carrier is organized.
Assessment
A carrier can be assessed with 30 days notice up to 1% of net direct written premiums for the preceding calendar year. Net direct written premiums are defined as Indiana workers compensation direct gross written premiums less returned premiums and dividends paid or credited to policyholders on direct business. Net direct written premiums do not include premiums on contracts between insurers or reinsurers.
Benefits
As per IC 27-6-8-7, Most covered claims are limited to $300,000, but there is no specified dollar limit that applies to covered workers compensation claims.
Contact Information
3502 Woodview Trace
Suite 100
Indianapolis, IN 46268
Phone: (317) 636-8204
Executive Director: Jan Funk
The Indiana Code is available on the State of Indiana website.
