How long does a policyholder have to wait to receive a payment from the guaranty fund?
It varies, but claim payments usually begin as soon as possible once a company is ordered liquidated. The process is speeded by the guaranty funds’ “early access” to estate assets provided by state law. It is not uncommon for claims to be paid within 60-90 days after the order of liquidation. Guaranty funds, coordinating with the receivers of the liquidating companies, work hard to avoid any interruption in periodic benefits that are being paid to claimants, such as workers’ compensation loss-of-wages payments.
