Runs on insurance firms are more likely to occur than runs on banks even in states with guaranty funds for insurers because these funds generally

Name: Runs on insurance firms are more likely to occur than runs on banks even in states with guaranty funds for insurers because these funds generally
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Insurance guaranty funds generally lack a permanent reserve fund, do not repay policyholders immediately, and lack federal government backing, making runs on insurance firms more likely than on banks.

Runs on Insurance Firms Are More Likely to Occur Than