[G049]

guaranty fund

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 (pre­assessment, as in New York) or afterward (post­assessment), and virtually all states now have such protection.

(See Insurance Guaranty (Insolvency Act), and Insurance Insolvency Act.)

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