See: guaranteed renewable contract .
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a policy which the insured has the right to continue in force by the timely payment of premiums to a specified age, during which period the insurer has no right to make unilaterally any change in any provision of the policy while the policy is in force, but may change premium rates by policyholder class.
Insurance Encyclopedia
Guaranteed replacement cost
A form of property coverage in which the insurance company agrees to replace damaged property even if the cost to do so exceeds the limit stated in the policy or the underlying rating basis on which the premium is calculated. This extension may be conditional on an approved appraisal and reporting of improvements to the building(s).
Guaranteed replacement cost insurance
Insurance policy that pays the full costs of replacing damaged property without any deduction for depreciation and without a dollar limit.
Guaranteed standard issue (Health Insurance)
A term used for a group plan that covers all policyholders no matter what their medical history may contain.
Guaranteed surrender value
The minimum surrender value that an insurer will pay in the event of a life policy being surrendered. High guaranincrease the incidence of early cancellation of savings policies, such as endowments, meaning that insurers may have to invest in readily realisable assets such as fixed interest securities. tees may
Guaranteed-issue insurance
Health insurance policy in which all eligible members of a certain group who apply and meet certain conditions are offered coverage.
Guarantor
Individual who promises to pay the medical bill by signing a form agreeing to pay or who accepts treatment, which constitutes an expressed promise.
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One who gives a Guarantee.
Guaranty association
In the insurance business, an organization that protects policy owners from losses when an insurance company becomes insolvent.
Guaranty Fund
A fund, derived from assessments against solvent insurance companies, to absorb losses of claimants against insolvent insurance companies.
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Established by law in every state, guaranty funds are maintained by a state’s insurance commissioner to protect policyholders in the event that an insurer becomes insolvent or is unable to meet its financial obligations. The funds are usually financed by assessments against all property and liability insurers regulated by a state.
Guaranty funds
State mandated funds collected from licensed insurers and maintained as backup protection for policyholders of bankrupt insurers. When an insurer becomes insolvent, the state will pay claims for that insurer out of the guaranty fund.
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A fund mandated by state law. The fund is comprised of money from the insurers currently conducting business in that state, which is available to companies unable to cover debts or unpaid claims. These are sometimes called Insolvency Funds.