What is one of the key responsibilities of the Montana Life and Health Insurance Guaranty Association?

The Montana Life and Health Insurance Guaranty Association plays a crucial role in ensuring that policyholders are protected when an insurance company becomes insolvent. One of its key responsibilities is to assess member insurers for necessary funds. This assessment allows the association to gather resources to pay benefits and claims to policyholders of an insurer that can no longer meet its obligations. By collecting assessments from member companies, the association can maintain a safety net for consumers, ensuring that they do not suffer financial loss due to insurer insolvency.

The responsibilities of the association do not include directly providing lower premiums to policyholders, as that is determined by market conditions and individual insurers. Similarly, while they may engage in consumer education, it is not their primary function. Regulating policy terms is also outside their scope, as that responsibility lies with state insurance regulators rather than the guaranty association itself.