Indiana Insurance Guaranty Association
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.
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.
The IIGA will pay the statutory workers compensation benefits, subject to a maximum of $100,000 per claim, and $300,000 per policy for all claims arising out of one occurrence, per IC 27-6-8-7. The employer is responsible for the remainder of a claim not paid by the IIGA.
8777 Purdue Road Suite 360
Indianapolis, IN 46268
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