Insurance Fund
/ɪnˈʃʊərəns fʌnd/
Definitions
- (n.) A reserve of money or assets held to cover potential claims or liabilities under an insurance policy or scheme.
The insurance fund was used to compensate policyholders after the insurer declared bankruptcy.
- (n.) A financial mechanism established by a regulatory authority or group of insurers to insure against insolvency or extraordinary losses.
The industry-wide insurance fund protects insured parties if an insurer fails to meet its obligations.
Forms
- insurance fund
- insurance funds
Related terms
See also
Commentary
The term covers both private reserve funds maintained by insurance companies and statutory or industry funds created as safety nets against insurer insolvency.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.