What is the maximum coverage APCIGF provides for most P&C claims?

$300,000. APCIGF provides maximum coverage of $300,000 per claimant for most P&C claims. Workers' compensation claims are covered up to statutory limits, which may be higher.

Can an Arizona P&C producer use APCIGF coverage as a selling point?

No, it is prohibited. Arizona law prohibits producers from using APCIGF coverage as a selling point or advertising the guaranty fund protection. Producers cannot compare it to FDIC insurance or imply policies are guaranteed by the fund.

Which type of insurance is NOT covered by APCIGF?

Surplus lines insurance. Surplus lines insurance is NOT covered by APCIGF because surplus lines insurers are non-admitted carriers. Policyholders of insolvent surplus lines insurers do not have guaranty fund protection.

Key Takeaways

The Arizona Property and Casualty Insurance Guaranty Fund (APCIGF) protects policyholders when P&C insurers become insolvent
APCIGF covers claims up to $300,000 per claimant for most covered claims
Workers' compensation claims are covered up to statutory limits
APCIGF does not cover surplus lines policies or self-insured plans
Producers cannot advertise or use APCIGF coverage as a selling point

Arizona Property & Casualty Insurance Guaranty Fund (APCIGF)

The Arizona Property and Casualty Insurance Guaranty Fund (APCIGF) protects Arizona residents when P&C insurance companies become insolvent.

Purpose and Function

APCIGF:

Protects policyholders of insolvent P&C insurers
Pays covered claims up to statutory limits
Funded by assessments on member insurers
Operates under state law supervision (A.R.S. Title 20)

How It Works

When a P&C insurer becomes insolvent:

DIFI takes over - Places insurer in receivership
APCIGF activates - Takes responsibility for covered claims
Claims processed - APCIGF pays covered claims
Assessments made - Member insurers pay assessments

Coverage Limits

APCIGF provides coverage up to specific limits:

Claim Limits

Coverage Type	Maximum
Most Covered Claims	$300,000 per claimant
Workers' Compensation	Statutory limits
Homeowners Claims	$300,000
Auto Claims	$300,000
Commercial Claims	$300,000

Important Limitations

$300,000 maximum per claimant
Deductibles may apply
Net worth reduction for large commercial entities
Large commercial claims may have limitations

What Is Covered

APCIGF covers claims under:

Covered Policies

Homeowners insurance
Auto insurance
Commercial property
Commercial liability
Workers' compensation

What's NOT Covered

Not Covered	Reason
Surplus lines policies	Non-admitted insurers
Self-insured plans	Not insurance policies
Title insurance	Separate guaranty fund
Ocean marine insurance	Excluded
Amounts above limits	Statutory limit applies
Life & health	Separate guaranty association

Funding

APCIGF is funded by assessments on member insurers:

Assessment Process

Member insurers pay assessments when needed
Based on premium volume in Arizona
May be recouped through rate increases
Separate accounts by line of insurance

Assessment Accounts

Account	Purpose
Workers' Comp Account	WC claims only
Auto Account	Auto claims
Property Account	Property claims
Other Account	All other claims

Producer Restrictions

Advertising Prohibition

Producers cannot:

Use APCIGF coverage as a selling point
Advertise guaranty fund protection
Imply policies are "guaranteed" by APCIGF
Compare APCIGF to FDIC
Suggest choosing insurer based on APCIGF

Required Conduct

Provide accurate information if asked directly
Cannot misrepresent coverage limits
Cannot suggest coverage exceeds actual limits
Must not use to induce sales

Exam Tip: Remember that producers CANNOT use APCIGF coverage as a selling point. This is a frequently tested rule in Arizona.

Claims Process

When an insurer becomes insolvent:

Notice sent - APCIGF notifies policyholders
Claims submitted - Directly to APCIGF
Claims evaluated - Within statutory limits
Benefits paid - If claim is covered
Policy may end - Policyholder finds new coverage

Net Worth Reduction

For insureds with high net worth:

Coverage may be reduced or eliminated for commercial entities
Encourages large companies to use other risk management
Does not apply to workers' comp claims
Does not apply to individuals

Key Arizona APCIGF Facts

Feature	Details
Maximum Coverage	$300,000 per claimant
Workers' Comp	Statutory limits (higher)
Surplus Lines	NOT covered
Advertising	Prohibited as selling point