[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 (pre-assessment, as in New York) or afterward (post-assessment), and virtually all states now have such protection.

(See Insurance Guaranty (Insolvency Act), and insurance insolvency act.)