Insurance “Guarantee Funds,” Another Mirage?

"I’ve written about the insurance industry’s troubles lately and was wondering……if a bank goes bust, its depositors are protected (at least theoretically) by FDIC…….is there a safety net for insurance policy-holders? Well, kind of. Each state has its own insurance “guarantee fund,” a private consortium of insurers operating in the state who agree to fund certain policy-holder’s losses should one of their brethren turn up insolvent....But here’s the kicker: None of these guarantee funds actually have any funds. There’s no pot of money for a rainy day. No, state insurance guarantee schemes are “post-funded.” Bailout cash is raised AFTER an insurer fails."