You said I could lose my policy if the insurance company goes out of business. What about the state’s guaranty fund?

States have a fund that will pay claims when a company goes under.  However, payments could be at a percentage of what you are entitled to, depending on how much money is available in the guaranty fund. The money in it comes from when the insurance department assesses all the companies that sell health insurance in the state to help an ailing company. Ask your insurance professional for how the fund works in your state or go to the national website for guaranty associations at

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