Question

Insurers do business in Oklahoma only after a thorough financial review. MOST insurance policies written in Oklahoma are protected by the Guaranty Association established to protect policyowners in the event an admitted company:

A) Offers a lower premium.
B) Goes bankrupt or becomes insolvent.
C) Increases coverage limits.
D) Provides new policy options.

Answer 1

Most insurance policies in Oklahoma are protected by the Guaranty Association, which safeguards policyowners if an insurance company goes bankrupt or becomes insolvent. The Guaranty Association ensures policyholders receive compensation for their losses if their insurer is unable to fulfill its obligations. This protection helps maintain the stability of the insurance industry in Oklahoma.

Step-by-step explanation:

Most insurance policies written in Oklahoma are protected by the Guaranty Association, which is established to protect policyowners in the event that an admitted company goes bankrupt or becomes insolvent. The primary role of the Guaranty Association is to ensure that policyholders are compensated for their financial losses if their insurance company is unable to fulfill its obligations. This provides a safety net for policyowners and helps maintain the stability and integrity of the insurance industry in Oklahoma.