How is the West Virginia Life and Health Insurance Guaranty Association primarily funded?

The West Virginia Life and Health Insurance Guaranty Association is primarily funded through assessments imposed on admitted insurance companies operating within the state. These assessments are collected to create a fund that can be used to protect policyholders in the event that an insurance company becomes insolvent. This mechanism ensures that there are sufficient resources available to cover claims and provide benefits to insured individuals, thereby maintaining trust and stability in the insurance market.

The necessity for this funding method arises because it directly links the financial responsibility to the entities that are authorized to operate within the state, ensuring that those who are part of the market contribute to a safety net for consumers. By relying on assessments rather than external sources, the association remains focused on the health of the local insurance industry and the protection of its policyholders.