What kind of assessments fund the West Virginia Life and Health Guaranty Association?

The West Virginia Life and Health Guaranty Association is primarily funded through assessments levied on admitted insurance companies. These assessments are critical because they create a financial pool that can be used to pay for claims from policyholders of insurers that become insolvent. The idea behind this funding mechanism is to ensure that consumers continue to receive benefits and coverage under their policies, even if their insurance company can no longer meet its obligations.

Admitted insurance companies are those that have been licensed to operate within the state and are thus subject to the state's insurance regulations, including the requirement to contribute to the guaranty association. This ensures that the burden of funding falls on entities that are actively participating in and benefiting from the state's insurance market, rather than on taxpayers or other external sources.