Since its creation in 1969, CIGA has successfully taken over the
covered claim responsibilities of over one hundred insolvent Member
Insurers. Between the years 1969 and 2000, CIGA averaged payments of
approximately $51 million per year.
By the year 2004, a number of insolvencies from large Workers'
Compensation Member Insurers greatly increased CIGA's payments. For
the 2011 fiscal year, CIGA paid in excess of $234 million in claims
arising from insolvent Member Insurers. For the most recent five year
period from 2007 through 2011, CIGA paid out in excess of $1.4
billion, an average of approximately $280 million per year for each of
the past five years. For historical annual paid amounts, click this
link
Historical Payment
Information.
CIGA pays and discharges covered claims through its employees as well
as through various service companies called Third Party
Administrators. For additional information on covered claims, duties,
and priority of claims, please reference California Insurance Code
ยง1063 et.
seq.
The CIGA Board of Governors appoints an Executive Director to oversee
the CIGA management team of Directors and Managers. For information
about the members of the Board of Governors,
here.
For information about the CIGA Management Team,
click here.