How the System Works
The Safety Net At Work
State life and health insurance guaranty associations play a crucial role in protecting policyholders when their insurance company goes out of business.
Insolvent Insurance Companies
When an insurance company goes out of business, it doesn’t declare bankruptcy. Instead, a court issues an order of liquidation with a finding of insolvency, which is why failed insurance companies are sometimes called “liquidations” or “insolvencies.”
Assessments & Capacity
Guaranty associations assess their member insurance companies to cover the costs of operations and policyholder protection. Access annual reports on these assessments.
Insolvency Costs
Explore reports on the costs of past and present company failures.
Guaranty Association Laws
Research the key provisions of each state’s guaranty association law.
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