Every state, experts say, have at least two guaranty funds that cover claims associated with insurance companies that have shut down. One fund covers property and casualty claims, including workers' compensation, and another for life insurance, health insurance and annuities. The funds are supported by assessments charged to insurance companies.
In the last six years, guaranty funds in the United States have paid a total of about $10 billion in claims, according to NCIGF.
Claims paid by the funds are generally capped at $300,000, but each state has its own limits. A listing of the limits for life and health insurance are available on the Web site for the National Organization of Life & Health Insurance Guaranty Associations, while the National Conference of Insurance Guaranty Funds offers more information on property and casualty insurance at its Web site.
Schmelzer said that state guaranty funds that are members of NCIGF have reported an uptick in phone calls by worried consumers in recent days. But it's not just concerns about AIG, he said, that might be prompting the calls.
"I think there's just a general sense of skittishness about what's going in the financial markets," he said.
Do you have more information about this topic? If so, please click here to contact the editors of ABC News.
Quotes delayed 15 minutes for NASDAQ. 20 minutes for NYSE and AMEX. Market Data provided by Interactive Data. Terms & Conditions.
Powered and implemented by Interactive Data Managed Solutions
