State Guaranty Fund

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State Guaranty Fund

A fund administered by the government of a U.S. state protecting 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 state guaranty fund will pay the policyholder instead. Insurance companies pay a small percentage of their revenues to different states to finance state guaranty funds.
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References in periodicals archive ?
(9) Failure to provide required disclosures, such as explanation of benefits statements, coverage issues, fraud warnings, free-look periods, right of appeal or guaranty fund notices
Ekren said the most important measure they would take in the future would be the support package for the real sector which included increasing efficiency of the credit guaranty fund, introduction of an incentive mechanism for sectors and regions and restructuring of companies.
Currently, agents are prohibited from discussing the Florida Insurance Guaranty Fund with their customers.
Perhaps nothing better reflects public policy's virtues and inherent challenges than the state property and casualty guaranty fund system.
UnitedHealth can pay the $350 million Penn Treaty guaranty fund assessment over several years, and it hopes to recover much of the charge through state insurance premium tax credits over time, according to David Wichmann, the company's president.
The new law makes three significant changes to the guaranty fund statute.
He said that Workers Compensation benefits provided by insurance are backed by a state guaranty funds, so that, if an insurer goes insolvent, the guaranty fund, which is financed by all carriers participating in that state, will ensure the payment of claims.
In this article, we derive conditions in an imperfect market setting, under which the introduction of a self-supporting insurance guaranty fund improves the position of the policyholders.
The Members' Equity Value, Accumulated Retained Earnings and Guaranty Fund will be invested with CISP.
Mike Bell, Norman, was appointed to serve as a member of the Self-Insurance Guaranty Fund Board for the remainder of a term expiring Nov.