guaranty fund

  • A surplus reserve fund created and required in certain states, derived from assessments against solvent insurance companies, to absorb losses of claimants against insolvent insurers.

    Internal Revenue Service 1

1Internal Revenue Service, Internal Revenue Manual 4.42.6 Glossary, http://­www.irs.gov/­irm/­part4/­irm_04-042-006.html (last accessed Dec. 22, 2009).