Which requirement must be met for the Arizona Insurance Guaranty Fund to cover a claim?

The Arizona Insurance Guaranty Fund is designed to protect policyholders by providing coverage for certain claims when an insurance company becomes insolvent. For a claim to be covered by this fund, it is essential that the insurance policy is active and within the coverage limits at the time of the insurer's insolvency. This ensures that the policyholder is still entitled to the benefits promised under their policy, and the fund can appropriately fulfill its role in covering valid claims.

An active policy affirms that the policyholder has maintained the necessary coverage, and adhering to the policy's coverage limits allows for accurate and appropriate compensation based on the specified terms of the agreement. Therefore, having an active and valid policy that meets the necessary conditions is foundational to the operation of the Arizona Insurance Guaranty Fund, as it underscores the legitimacy of the claim being made against the fund.