Guaranty fund

{
  "id": "MLC-T-INS-001695",
  "term": "Guaranty fund",
  "field": "Insurance and risk management",
  "definition": "A state-mandated fund, typically financed by assessments on solvent insurance companies, designed to protect policyholders in the event that an insurance company becomes insolvent. These funds pay covered claims up to certain limits when an insurer is unable to meet its obligations. Each state maintains its own property and casualty and life and health guaranty associations.",
  "url": "https://mlchart.com/terminology/insurance/guaranty-fund/"
}