What's a Guaranty Association and how does it work?

If an insurance company becomes financially insolvent and a court orders it to liquidate, the Guaranty Association provides limited claim payment protection to Washington state residents. There are two Guaranty Associations depending on the type of insurance:

  • Auto, home, business and related types of insurance - the Guaranty Association will pay up to the policy limit, or up to $300,000, whichever is lower.
  • Life, health and long-term care insurance, or annuities - the Guaranty Association will pay up to the policy limit, or up to $500,000, whichever is lower.

The money Guaranty Associations use to pay claims comes from insurance companies, not the state.

State law (app.leg.wa.gov) requires most licensed insurers to belong to Guaranty Associations.

Contact information

Auto, home and business insurance:

Western Guaranty Fund Services (www.westernguarantyfundservices.org)

1720 S. Bellaire
Suite 408
Denver, CO 80222
800-303-7565


Life, health and long-term care insurance, and annuities:

Washington Life & Disability Guaranty Association (www.walifega.org)

P.O. Box 2292
Shelton, WA 98584
360-426-6744

Updated 08/19/2014

See also

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