Florida Insurance Guaranty Association (FIGA)

Pays certain outstanding covered claims to Florida residents on behalf of an insurer that has become insolvent. Membership is required of insurers transacting in Florida as a condition of continued authorization. Administered by a board of directors elected by the member insurers, with DFS oversight and audits. Funded by assessments: regular assessments capped at 2% of an insurer's net direct written premium on Florida risks, plus emergency assessments of an additional 2% (total 4%) for hurricane risk. Per the course note, FIGA pays a maximum of $300,000 per claim, up to an additional $200,000 for damage to a covered structure and contents on a homeowner's claim, and all claims carry a $100 deductible.

The all-lines safety net: when a member insurer collapses, the surviving members' assessments pay its Florida claims — minus $100, up to the caps.