How long does a policyholder have to wait to receive a payment from the guaranty fund?
Claim payments begin as soon as possible once a company is ordered liquidated and IIGF receives any necessary claim file and policy coverage information from the liquidator. IIGF does not require any particular form for making a claim, except for claims for unearned premiums. However, IIGF does require all claims to be made in full compliance with any procedures established by liquidators for reporting new claims. These procedures may include filing a proof of claim using a form specified by the liquidator. Commercial policyholders must also provide any required information
Guaranty funds, coordinating with the receivers of the liquidating companies, work hard to avoid any interruption in periodic benefits that are being paid to claimants, such as workers compensation loss-of-wages payments. When a delay occurs, it is often related to challenges in accessing policy and claim data held by the insolvent company.
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