What's a Guaranty Association and how does it work?

When an insurance company goes into liquidation, we may refer policies to one of two Guaranty Associations to pay claims:

  • Auto, home, business and related types of insurance - the Guaranty Association will pay only up to the policy limit, or up to $300,000, whichever is lower.
  • Life, health and long-term care insurance, or annuities - the Guaranty Association will pay only up to the policy limit, or up to $500,000, whichever is lower.

The money Guaranty Associations use to pay claims comes from insurance companies, not the state.

State law requires most licensed insurers to belong to Guaranty Associations.

Contact information

Auto, home and business insurance:

Western Guaranty Fund Services (www.westernguarantyfundservices.org)

1720 S. Bellaire
Suite 408
Denver, CO 80222
800-303-7565


Life, health and long-term care insurance, and annuities:

Washington Life & Disability Guaranty Association (www.walifega.org)

P.O. Box 2292
Shelton, WA 98584
360-426-6744

 


Updated 03/27/2014

See also

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