A fund, derived from assessment against solvent insurance companies, to absorb losses of claimants against insolvent insurers.
A state-required pool of funds covering benefits of insolvent insurers and designed to protect providers and consumers. Return to
State insurance funds that provide protection in case of issuer bankruptcy for some life insurance customers. The funds are supported by insurance companies based on the volume of the particular type of business that they have issued in the state. Coverage varies by state. GICs are typically not covered or covered to a maximum of $5 million per contract holder. There are no glossary words under this letter.
A fund established in the U.S. to meet the policy obligations of insurance companies that fail. The insurance companies make contributions to the fund, which was established by the U.S. government.
A state-run mechanism funded by insurance companies to pay claims against insolvent insurance companies
A state fund that provides a system to pay the claims of insolvent insurers; the money in the guaranty fund comes from assessments collected from all insurers licensed in the state.
A guaranty fund is used when insolvent insurance companies cannot pay their claims. The fund is managed by the state and is created with money collected from insurance companies licensed in that state.
An amount of money assessed certain insurers in a given state to reimburse policyholders and claimants of an insolvent insurer in that state. The fund may be created before an insolvency occurs (pre-assessment, as in New York) or afterward (post-assessment), and virtually all states now have such protection.
A fund, derived from assessments against solvent insurance companies, to absorb losses of claimants against insolvent insurance companies.
The mechanism by which solvent insurers ensure that some of the policyholder and third party claims against insurance companies that fail are paid. Such funds are required in all 50 states, the District of Columbia and Puerto Rico, but the type and amount of claim covered by the fund varies from state to state. Some states pay policyholders' unearned premiums – the portion of the premium for which no coverage was provided because the company was insolvent. Some have deductibles. Most states have no limits on workers compensation payments. Guaranty funds are supported by assessments on insurers doing business in the state.
