HOW MUCH MUST THE GUARANTY FUNDS PAY?
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