What is the primary purpose of the Illinois Life and Health Insurance Guaranty Association?

The primary purpose of the Illinois Life and Health Insurance Guaranty Association is to provide a safety net for policyholders by ensuring they receive their entitled benefits in case their insurance company becomes insolvent. This association serves as a protective mechanism that helps maintain consumer confidence in the insurance market by guaranteeing that individuals with life and health insurance policies can still access their benefits, even if their insurer fails financially.

This function is essential because it mitigates the potentially devastating financial consequences a policyholder could face if their insurer cannot meet its obligations. By offering this form of protection, the association helps to stabilize the insurance industry overall, ensuring that policyholders are not left without coverage or financial support during critical times.

The other options do not encompass the core mission of the Guaranty Association. While investigating claims, regulating premiums, and supporting insurance agents are important aspects of the insurance industry, they do not represent the primary aim of ensuring that policyholders are protected in the event of insurer insolvency.