Consumers who hire them are taking a lot more risks than they would if they used someone who was properly registered -- a distinction that ensures the contractors have insurance, that there's someplace to turn if there's a dispute, and to have the protection of the state Guaranty Fund
, which enables homeowners who suffer monetary losses to apply for compensation.
In his address to the NCIGF membership, LaSalle said that a focus during his term would be on legislative services, guaranty fund best practices and the promotion of awareness of the guaranty fund system among state guaranty fund
Most point-to-point cap rates on equity index annuities will still be nearer 2 percent (or better) and as of September 1st, offer State Guaranty Fund
backing of up to $250,000 (increased from the previous level of just $100,000).
So, for example, an insurer that has a 7% share of the Tennessee insurance market would be assessed by the state guaranty fund
for 7% of the outstanding claims that could not be paid by liquidating the assets of an insolvent insurer.
Second, the state guaranty fund
has zero dollars in it; the solvent insurers are assessed after a company fails.
That is exactly what the state guaranty fund
system is doing.
He said workers compensation benefits provided by insurance are backed by a state guaranty fund
It appears annuity owners of failed National American Life and Summit National Life Insurance were 100 percent covered up to limits of their state guaranty fund
and received a little over 90 cents on the dollar on account values in excess of these limits.
It would be good to get the insurer back into shape, adds Ruoff, because the New York state guaranty fund
does not cover bond insurance.
After an insurer is declared insolvent, the state guaranty fund
steps into the shoes of the failed insurer and immediately begins paying covered claims.
Brown said even if each state similarly enacts the NAIC-sponsored Guaranty Association Model Act, as demanded by the accreditation process, a system of 50 distinct state guaranty fund
administrators would still be "overly burdensome.
In the event that one of the insurers in the structure were to be liquidated, the state guaranty fund
should "step into the shoes" of the failed insurer to cover the specific "layer" of protection that was to be afforded by the failed insurer.