What created the South Carolina Property and Casualty Insurance Guaranty Association?

The South Carolina Property and Casualty Insurance Guaranty Association was established by the South Carolina Property and Casualty Insurance Association Act. This legislation was designed to provide a safety net for policyholders in the event that an insurer becomes insolvent or unable to meet its obligations. The creation of this association ensures that insured individuals can still receive compensation for covered claims, thereby protecting consumers and maintaining stability within the insurance market.

The act specifically outlines the framework for the association, including its funding mechanisms and operational guidelines. By pooling resources from solvent insurers, the association can effectively cover claims arising from the insolvency of member insurance companies. This structure emphasizes the importance of maintaining consumer confidence and financial responsibility within the property and casualty insurance sector.