NCIGF – Supporting a system of policyholder protection The National Conference of Insurance Guaranty Funds Supporting a system of policyholder protection At the heart of every property and casualty insurance contract lies a promise that if misfortune occurs insurance will step in to soften the blow by covering outstanding claims. But what happens when an insurance company becomes financially troubled fails and is no longer able to uphold its end of the bargain. Thats when the state property and casualty guaranty fund system a system few know much about steps in. Put simply guaranty funds provide an essential safety net for policyholders one that meets the needs of those least able to deal with losses should their insurance company fail.