This category contains sites related to financial guaranty insurance. This specialized niche of the insurance business exists in order to enhance the credit quality of financial instruments, such as municipal bonds. Financial guaranty insurance typically involves three parties: the investor, the issuer, and the insurer. The issuer pays a premium to the insurer for issuing a financial guaranty policy for the benefit of the investor. In the event that the issuer defaults on its obligations, the insurer guarantees full and timely payment of principal and interest to the investor.