Thursday, December 11, 2008

Finding Security In Guaranty Associations

Guaranty associations were created by states to product insureds in case of a company insolvency. All insurance companies licensed in a state are required, as a condition of doing business in that state, to be a member of the guaranty association.

The guarantee varies but generally ranges from a minimum of $100,000 to $500,000 in some states (Connecticut, New York and Washington).

Insurers are forbidden to talk about this guarantee (unlike banks that are encouraged to promote the FDIC guarantee).

I plan to interview Peter Gallanis, the national director for the national organization representing each of the state guaranty associations and look forward to posting meaningful information as part of our Ask The LTC Guy Q&A featured on the Association's Consumer Information Center.

I have a list of questions that I plan to ask Mr. Gallanis but if you have suggestions, please E-mail me at mailto:jslome@aaltci.org .

Thanks. Looking forward to sharing some of the findings here as well.

1 comment:

  1. Insurance is changing as we know it due to the economy and bailouts. Since then the rates have drastically changed. All leading companies have changed lots of policies. When was the last time you researched insurance rates? You'd be surprised what recently changed!!!

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