State Guaranty Fund

(redirected from Solvency Fund)

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.
References in periodicals archive ?
As of September 30, half of the assets from dissolved congregations will go to the pension solvency fund up to a maximum of $2 million, and the remaining 50 per cent will be "returned to the presbytery for mission work in their midst and beyond," the assembly decided.
At present, 25 per cent of the assets of dissolved congregations goes to the pension solvency fund, 52.5 per cent is returned to the presbytery for mission work and 22.5 per cent is transferred to the New Church Capital Fund.
The solvency funded status of the typical pension plan has deteriorated by about 10 per cent over the course of 2014 due to the decline in interest rates and deteriorations in annuity pricing.
"All we can do is make sine the public knows that these entities are not regulated in the same way that other insurance companies m retorted and that they are not protected by state solvency funds."
According to our data, the average solvency funded ratio for a typical Canadian pension plan reached 100% by December 31, 2013.
The median pension solvency funded ratio or the ratio of the market value of plan assets to liabilities is approximately 1 percent higher this year than at the start of 2012.