Which of the following is NOT covered by the Washington Insurance Guaranty Association?

The Washington Insurance Guaranty Association (WIGA) provides a safety net for policyholders in the event that an insurance company becomes insolvent. It covers various types of claims to protect consumers, but there are specific exclusions outlined in its regulations.

Claims against fraternal benefit societies are not covered by the WIGA. These societies operate on a different structure than typical insurance companies, and their model is often based on mutual aid rather than traditional insurance. Therefore, if a fraternal benefit society becomes insolvent, the Guaranty Association does not extend its protections to claims arising from those societies. This is a distinguishing characteristic that sets it apart from more conventional insurance products, such as property insurance and other types that WIGA does cover.

In contrast, the other options provided—insolvent property insurance claims, life insurance claims from bankrupt companies, and disability insurance claims—fall within the jurisdiction of WIGA. The primary purpose of WIGA is to ensure that policyholders can receive benefits even when their insurance providers face financial difficulties, thereby offering a form of security in the insurance marketplace.