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Insurance Guaranty Act
(redirected from Insurance Guaranty Acts)

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Insurance Guaranty Act
Legislation in several American states establishing a fund to protect policyholders and pensioners from the default of an insurance company. That is, if an insurance company is licensed to operate in a given state, policyholders within that state are protected because, if the company defaults on its payments, the fund created by the insurance guaranty act will pay the policyholder instead. See also: State guaranty fund.
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