Which of the following would be protected from financial loss by the guaranty association?
General Claims Unearned Premium Pre-Liquidation Vendors What is considered the purpose of the guaranty association?When an insurance company fails, a guaranty association is an entity which steps into the shoes of the failed insurer for the purpose of providing certain continued benefits and/or resolution of covered claims. However, not all types of insurance policies or claims are covered by guaranty associations.
What is the most the insurance guaranty association will pay?Auto, home, business and related types of insurance - the Guaranty Association will pay 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 up to the policy limit, or up to $500,000, whichever is lower.
Which of the following is covered by the life and health insurance guaranty association of North Carolina?Generally, life, health insurance and annuity policies as well as certificates under group policies and contracts issued by the guaranty association's member insurers are covered by the association.
How insurance companies can protect themselves from collapse?Answer and Explanation: Insurance companies protect themselves against losses due to adverse selection and moral hazards by using deductibles.
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