Which of the following statements is true about the state guaranty association fund?
A) All the states do not have state guaranty association fund for property/casualty and life/health insurance.
B) They are security deposit pools made up of voluntary contributions
C) Its contributions are from solvent, private insurance companies doing business in their respective states.
D) It assesses each company on the basis of the percentage of its premium volume to cover the obligations to policyholders.
E) Only companies who have volunteered to pool their funds are allowed to use it during difficult times.
Correct Answer:
Verified
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