The California Insurance Guarantee Fund or CIGA as it is commonly referred to provides a way for claims to be paid in the case of insolvency of an admitted insurance carrier. Except for workers compensation claims the maximum amount of a covered claim through CIGA is $500,000. Any amount of a claim in excess of the $500,000 would be the responsibility of the insured.
To learn more about CIGA visit their website or visit the Dept of Insurance and read their article on Conservation and Liquidation.