Q: Does GCU participate in the States’ Insolvency Fund?
As a Fraternal Benefit Society, GCU is NOT part of the insolvency fund in any State. Frankly, we think this is a GOOD thing. The insolvency fund is the State's ability to levy an assessment against a company to restore (up to the various state limits) the value of a client's account at a failed institution.
Because GCU is not able to be assessed by the insolvency fund, its members assets are protected against the poor business decisions and practices of any other company.
View: GCU Financial Reports
Look at it this way: YOU run a great company – sound and prudent financial and marketing decisions - and have built up a 5% market share in your State. Another company is poorly run, making risky investments to market "too good to be true" rates. They go insolvent to the tune of $1 billion. YOUR well-run company would be ASSESSED $50,000,000, which would come DIRECTLY out of your surplus.
In its ENTIRE history, GCU has not only survived, but prospered, through one major Depression and countless "recessions". Its members should not be penalized for the poor business practices of another company.