guaranty fund

Definition of "guaranty fund"
  1. A state-funded system supported by assessments from licensed insurers, designed to pay the claims of insolvent insurance companies
How to use "guaranty fund" in a sentence
  1. The failing insurer's claims were covered by the guaranty fund.
  2. All state-licensed insurers were assessed to contribute to the guaranty fund.
  3. When an insurer falls bankrupt, the guaranty fund steps in to ensure claim payments.

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