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The California Insurance Guarantee Association (CIGA) was created in 1969. The California Insurance Guarantee Association (CIGA) operates under Sections 1063-1063.77 of the California Insurance Code. CIGA is the largest guarantee association in the country. CIGA provides a mechanism for the payment of covered property, casualty, and workers` compensation insurance claims of insolvent insurance companies. Since its creation 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 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.
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