CIGA has three separate funds organized by line of business that cover (1) workers' compensation claims, (2) homeowners and automobile claims (including personal injury), and (3) all other claims (e.g., products liability and commercial property and liability). Claims and/or statutory benefits pursuant to a policy under categories (2) and (3) above are limited to no more than $500,000. CIGA's revenue for each of its three funds is derived from assessments of Member Insurers, distributions from the estates of insolvent Member Insurers, and investment income. Revenues received are allocated into the three separate funds and are used to pay the claims and costs allocated to the applicable line of business.
Nothing in the following frequently asked questions and answers alters the statutory and case law definitions of covered claims for which CIGA is responsible. The actual terms of the applicable statutes, other controlling laws, and legal opinions shall prevail over the information provided on this web site. These FAQs and answers are not intended to provide legal advice.