What does Guaranty Fund mean? Read on to discover the definition & meaning of the term Guaranty Fund - to help you better understand the language used in insurance policies.
Established by law in every state, guaranty funds are maintained by a state's insurance commissioner to protect policyholders in the event that an insurer becomes insolvent or is unable to meet its financial obligations. The funds are usually financed by assessments against all property and liability insurers regulated by a state.
We hope the you have a better understanding of the meaning of Guaranty Fund.