The conversation between human and AI assistant.
What happens when an insurance company is insolvent on the books?
Is there any protection for policyholders if their insurance company becomes insolvent?
Many states have guaranty funds that provide limited protection to policyholders of insolvent insurance companies. These funds are typically funded by the insurance industry, and they are designed to protect policyholders in the event that their insurance company is unable to meet its obligations.