This section includes specific information, by Guaranty Association, on assessments made, covered lines of business, premiums (by account where applicable), links to assessments previously authorized but not called (if any), and a statement on assessment methods and procedures.

Please complete the 2004 Assessment and Financial History Reporting Forms (an xls file) for your state.

If detailed information on an individual State Guaranty Fund Assessments is required, you may obtain specific information here: Assessment Liability by State.

Additionally, you may obtian the NAIC listing of Lines of Business here: Line Descriptions (xls).

The Guaranty Fund Laws, includes specific limits, provisions, etc. If detailed information on an individual State Guaranty Fund Law is required, you may obtain specific information here: Guaranty Fund Laws & Summaries by State.

During 2001/2002 several new multi-state insolvencies were initiated. There are also others, not listed, with an impact on only one or a few states. The major new insolvencies are:

The establishment of the “ultimate” assessment liability for Reliance (or any other property/casualty insolvency) is impacted by most or all of the following factors:

• Guaranty Fund coverage is dictated by state statute in addition to the insurance policy upon which a claim is based, and the actual amount of Guaranty Fund reserves/payments may differ substantially from that included in the Reliance financial statements. Specific areas of differences include but are not limited to:
  • Net worth exclusions/recoveries;
  • Guaranty Caps less than policy limits;
• The availability and timing of assets which may be made available to Guaranty Funds by the Liquidator is unknown at this time;
• The ability and timing of the liquidator in successfully completing the marshalling of assets and the timing and amount of distribution(s) to claimants, including Guaranty Funds, cannot be predicted at the present time;
• The actual claim valuations of existing claims may differ substantially from the reserves;
• The payout (cash flow) pattern of claim payments by Guaranty Funds may be significantly different from the Reliance experienced pattern, and is not consistent between liquidations due to the variation in the types of claims included;
• Some claims will not mature to a known settlement amount for several years.