Since its creation in 1969, CIGA has successfully taken over the covered claim responsibilities of over one hundred insolvent Member Insurers. Between the years 1969 and 2000, CIGA averaged payments of approximately $51 million per year.
By the year 2004, a number of insolvencies from large Workers' Compensation Member Insurers greatly increased CIGA's payments. For the 2004 fiscal year, CIGA paid in excess of $1 billion in claims arising from insolvent Member Insurers. For the most recent five year period from 2003 through 2007, CIGA paid out in excess of $3.5 billion, an average of approximately $711 million per year for each of the past five years.
CIGA pays and discharges covered claims through its employees as well as through various service companies called Third Party Administrators. For additional information on covered claims, duties, and priority of claims, please reference California Insurance Code §1063 et. seq.
The CIGA Board of Governors appoints an Executive Director to oversee the CIGA management team of Directors and Managers. For information about the members of the Board of Governors, click here. For information about the CIGA Management Team, click here.