Introduction




When consumers purchase a policy from an insurance company, they are seeking a promise that the terms and conditions stated in the policy will be fulfilled and they will receive the protection they need. The Pennsylvania Insurance Department monitors these companies and enforces the laws and regulations companies are required to follow to do business in Pennsylvania. If a company violates Pennsylvania insurance laws, is operating in a financially hazardous manner or is insolvent (the assets are not sufficient to meet its policy obligations or the surplus does not meet the standards set by Pennsylvania statutes) so that the contractual obligation to the policyholder cannot be fulfilled, the Department can intercede and take the necessary steps to bring the company into compliance or halt its business.


This brochure will highlight the steps the Insurance Department takes to assist financially troubled companies, explains the concept of a guaranty association and offers a list of frequently asked questions and answers. Any additional questions or comments can be directed to the phone numbers and offices listed at the conclusion of the brochure.