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

The primary purpose of the Georgia Life and Health Insurance Guaranty Association is to pay claims if an insurer becomes insolvent. This association serves as a safety net for policyholders, ensuring that they will still receive benefits and claims even if their insurance company is unable to fulfill its obligations due to financial failure. This protection is crucial for maintaining consumer confidence in the insurance market.

The association helps to uphold the integrity of the insurance system by providing a mechanism to handle claims, minimizing the impact on policyholders and promoting stability within the insurance industry. This function is foundational, as it reassures consumers that their investments in life and health insurance will be safeguarded, reinforcing the overall trust in the insurance enterprise.

The other options, while relevant to the broader context of insurance regulation and the functioning of the industry, do not accurately represent the central role of the Guaranty Association. Its main focus is on providing financial protection for policyholders rather than regulating agents, approving new products, or setting rates.