Full text and statutory guidelines for the Post Assessment Property and Liability Insurance Guaranty Association Model Act.
The Hawaii Post Assessment Property and Liability Insurance Guaranty Association (PL IGA) Model Act is a regulatory mechanism designed to protect policyholders and claimants in the event of an insurer's insolvency. This act establishes a framework for a state-based, non-profit guaranty association that provides coverage for unpaid claims arising from property and liability insurance policies. The Hawaii PL IGA Model Act aims to ensure that policyholders and claimants are not left financially vulnerable due to an insurer's inability to fulfill its obligations. The association created under this act is funded by assessments imposed on insurance companies operating in the state, and these funds are used to pay covered claims. The Hawaii PL IGA Model Act encompasses various provisions and guidelines to govern the operations of the guaranty association. It outlines the association's powers and duties, including the establishment of a board of directors responsible for managing the association's affairs. This act also specifies the procedures for filing claims, the eligibility criteria for coverage, and the limitations on the association's liability. It is important to note that the Hawaii PL IGA Model Act may have different iterations or amendments over time to address changing market conditions and regulatory requirements. However, there is no specific categorization of different types of the Hawaii PL IGA Model Act. The act itself serves as a blueprint for states to enact their own versions, tailored to their unique legal and insurance landscapes. In summary, the Hawaii PL IGA Model Act provides a safeguard for policyholders and claimants in the state. By establishing a state-based guaranty association funded by insurance company assessments, it ensures that covered claims arising from property and liability insurance policies are paid even in the event of insurer insolvency. This act serves as a foundation for designing a comprehensive framework to protect individuals and businesses from potential financial losses caused by insurance company failures.
