[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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