What is Florida's Cap guarantee fund set at?

Florida's Cap guarantee fund is specifically designed to protect policyholders in the event that an insurer becomes insolvent. The correct amount set for this fund is $300,000 for claims arising from a single policyholder. This means that if a policyholder has a claim due to the insolvency of a surplus lines insurer, they are guaranteed coverage up to this amount.

This amount plays a crucial role in providing security and assurance to policyholders participating in the surplus lines market, knowing that there is a safety net provided by the Cap guarantee fund. By having a specific cap, the fund helps maintain stability within the insurance market and mitigates risky exposures that could arise from insurer bankruptcies.