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How are these assessments computed?

State guaranty fund assessments are computed based on the number and value of claims the guaranty association is obligated to pay. Claim files come in from the insolvent insurance company; they are reviewed and appropriate reserves are established on those files. (Reserves are the projected ultimate liability under terms of a given policy.) As noted, the assessment cap is two percent of net direct-written premium in any one year.



faq | by Dr. Radut