How many guaranty funds are there?
Guaranty funds are active in every state, the District of Columbia, Puerto Rico and the Virgin Islands. State laws require that all licensed property and casualty insurance companies belong to the guaranty funds in every state where they are licensed to do business. Every state has a guaranty fund for property and casualty insurance claims covering things like auto and homeowners insurance policies. Several states also have separate funds for workers’ compensation claims. In addition, every state also has a separate entity set up to handle claims related to life, health and annuity insurance companies that become insolvent.
