HOW MUCH MUST THE GUARANTY FUNDS PAY?

Wed, 10/01/2014 - 13:54

State law limits the amount a guaranty fund may pay to a person presenting a claim to an insolvent insurer.  The maximum payments to individuals allowed by Arizona law are:

Arizona Property and Casualty Insurance Guaranty Fund (the following amounts are effective for insurers ordered into liquidation on or after September 19, 2007)

  • $300,000 for most covered claims, subject to a $100 deductible
  • $10,000 refund of unearned premium, subject to a $25 minimum

Arizona Life and Disability Insurance Guaranty Fund (the following amounts are effective for insurers ordered into liquidation on or after September 13, 2013)

Life Insurance

  • $300,000 in death benefits
  • $100,000 in cash surrender or withdrawal benefits

Annuities (other than unallocated annuity contracts)

  • $250,000 in the present value of annuity benefits

Health Insurance

  • $500,000 for basic hospital, medical and surgical insurance or major medical insurance
  • $300,000 for disability income insurance
  • $300,000 for long term care insurance
  • $100,000 for other types of health insurance coverage