Do state guarantee funds apply to a RRG?
A. No. As noted above RRGs, like Excess & Surplus Lines carriers, are not required to contribute to any state guarantee fund so they are not supported by those same guarantee funds in the event of insolvency. However it should be noted that in an insolvency, state guarantee funds vary from state to state, but generally provide only a limited amount of coverage (typically $300,000 per claim) restrict the time available to report a claim and assign their defense counsel to handle claims.
