Which of the following best describes the function of the Life and Health Insurance Guaranty Association?

The function of the Life and Health Insurance Guaranty Association is best described by its role in guaranteeing claims payment for policyholders. When an insurance company becomes insolvent and is unable to fulfill its obligations to policyholders, this association steps in to provide a safety net. It ensures that claims are paid up to certain limits, thus protecting consumers and maintaining trust in the insurance industry. This mechanism is crucial for the stability of the market, as it assures policyholders that they have recourse in the event of an insurer's bankruptcy.

In contrast, providing insurance coverage is the primary role of insurance companies themselves, not the Guaranty Association. Similarly, regulating insurance premiums falls within the purview of state insurance departments rather than the Guaranty Association, which does not exert control over pricing or premium regulations. Lastly, offering investment advice is outside the scope of the association's responsibilities, which focus solely on consumer protection during insurance company failures rather than providing financial or investment guidance.