What is the maximum payout per claim under the PIGA Act?

Under the Pennsylvania Insurance Guarantee Association (PIGA) Act, the maximum payout per claim is established to provide protection to policyholders when an insurance company becomes insolvent. The correct maximum payout per claim is $300,000. This amount ensures that individuals and entities who have claims against an insolvent insurer can receive compensation, up to this limit, for covered losses.

This protection is particularly important as it helps maintain consumer confidence in the insurance market by providing a safety net. Knowledge of the maximum payout is critical for public adjusters, as it informs them about the potential limits of recovery for their clients in cases of insurer insolvency. Understanding the implications of this limit can help adjusters better advise their clients on the claims process and possible outcomes.