Guaranty Fund: Your safety net

Most states, including Oregon, have a safety net to protect consumers from financial loss if an insurance company becomes insolvent and is unable to pay claims. Oregon's safety net is called the Oregon Insurance Guaranty Association (OIGA). The association was established by state law and is generally composed of licensed insurance companies doing business in the state.

• It pays covered claims of Oregon resident policyholders and other claimants up to $300,000 if an Oregon new licensed insurance company becomes insolvent.
• Claims are paid according to terms of the original insurance policy. The association won't pay any claim the insurance company would not have paid.
• The OIGA assesses other member insurers to pay claim costs of insolvent insurers. Many homeowner insurers add a surcharge to recover their OIGA assessments. The surcharge amount will be indicated on your billing statement or policy renewal form.