The Property and Casualty Guaranty Corporation pays the full amount of any claim between $100 and $300,000 if the claim occurs within what period after insolvency?

• A. 30 days after an insurer has been declared insolvent and before the insurance policy has expired
• B. 60 days after insolvency
• C. 90 days after insolvency
• D. 120 days after insolvency

Answer: (A)

Coverage under the Property and Casualty Guaranty Corporation is designed to help policyholders when an insurer becomes insolvent, but only for claims that arise soon after that insolvency. The rule provides a brief window in which a claim can be paid in full, up to the stated limits, to protect customers during the transition before the insurer’s obligations wind down. Specifically, a claim must occur within 30 days after the insurer is declared insolvent and while the policy is still in force (before the policy expires) for it to be covered. If a claim happens after that 30-day period, or after the policy has expired, it isn’t covered by the guaranty association. This is why the 30-day window after insolvency and before policy expiration is the correct period.