Which organization is responsible for providing funds to protect an insured if an insurer becomes insolvent?

The Florida Life and Health Insurance Guaranty Association plays a crucial role in protecting policyholders in the event of an insurer's insolvency. This organization is established under Florida law to ensure that consumers who have health or life insurance policies are safeguarded from losing their benefits if their insurance company goes bankrupt.

When an insurer is unable to meet its financial obligations and becomes insolvent, the Florida Life and Health Insurance Guaranty Association steps in to provide the necessary funds to cover claims, up to certain limits. This system is designed to maintain public confidence in the insurance market by ensuring that policyholders still have access to their benefits, thereby providing a safety net for consumers.

Other organizations mentioned have different roles; for instance, the Florida Health Insurance Council focuses on promoting public awareness and advocacy in health insurance rather than providing insolvency protection. The Florida Department of Financial Services oversees the regulation of insurance companies and consumer protection but does not provide funds directly for insolvency. Lastly, the National Insurance Crime Bureau is dedicated to combating insurance fraud and does not provide consumer protections concerning insurer insolvency. Thus, the role of the Florida Life and Health Insurance Guaranty Association is unique and essential in maintaining the stability of the insurance market in Florida.