Question

The Guaranty Association pays covered claims up to what amount for covered claims for other than return of premium and workers' compensation?

A) 50% of the claim amount
B) 75% of the claim amount
C) 90% of the claim amount
D) 100% of the claim amount

Answer 1

The Guaranty Association pays 100% of covered claims, not including return of premium and workers' compensation, up to the coverage limits.

Step-by-step explanation:

The Guaranty Association pays covered claims up to 100% of the claim amount for covered claims other than return of premium and workers' compensation. This assures policyholders that they will receive full payment up to the coverage limits in case an insurance company fails to pay a claim due to insolvency. However, it's important to note that specific coverage limits and rules can vary by state.