What is the primary purpose of the Facility Association?

The primary purpose of the Facility Association is to ensure immediate availability of insurance for those who may have difficulty obtaining it through the standard insurance market. It serves as a mechanism to provide coverage to high-risk individuals or those who are unable to secure insurance from conventional insurers. This helps to stabilize the market by ensuring that even individuals with adverse risk profiles can access necessary insurance.

While the Facility Association does indeed cater primarily to high-risk clients, its overarching goal extends beyond merely providing insurance; it aims to ensure that insurance is available to these clients without unnecessary delays. The organization plays a crucial role in the market, ensuring that coverage is accessible, thereby protecting consumers and supporting the stability of the wider insurance industry.

In contrast, regulating insurance premium rates falls under the jurisdiction of regulatory bodies rather than the Facility Association itself. Also, while the Facility Association does act in a way that may seem competitive by providing insurance, its main function is not to compete with other insurers but to fulfill a specific need in the market for immediate availability of insurance coverage.