✅ SOLVED Can someone explain what this "Guaranty Fund Certificate" is about

[Minrelica]

Can someone explain what this "Guaranty Fund Certificate" is about

Following the recent passing of a friends family member, this certificate was discovered amongst her belongings. I offered to help do some research to find out what exactly this document means, why they existed, is it now obsolete, etc.

Having found basically nothing out on my own from a few Internet searches, I'm turning to you trasurenet experts. I'm confident that someone will be able to shed some light on this.

- WIT

 

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[ipsilateral]

Re: Can someone explain what this "Guaranty Fund Certificate" is about

Theoretically, if the policy wasn't cashed out or voided, buddy would be owed an insurance settlement from this insurance carrier. Might be worth some research, but my gut tells me that it's probably only worth the paper it's printed on. It's an insurance certificate of some type, I think.

 

[ipsilateral]

Re: Can someone explain what this "Guaranty Fund Certificate" is about

Why not contact the Minnesota Department of Commerce listed on the item?

 

[Daedalus]

Re: Can someone explain what this "Guaranty Fund Certificate" is about

From the date that I can hardly read it looks like it was issued in the middle 40's and it looks like it was an interest bearing bond or as you see an Ins. bond that someone owned .
If the company is still around you might get this paid , also you need to check as the bond may still be in effect and has been gaining money the whole time .
I have some bonds that my Great grandmother left me that I have found after having them for 20 years that they have money value to them , we are now trying to find out how and where to cash them in as the company's that held the accounts have been bought up by other company's in the last 60 or so years .

Also you might check the lost funds and accounts office of your State , I found money that was owed to me there that I did not even know about and had been there for 30 years lol . This and other items may be in your States holding account . So I would make a few phone calls to find out. You never know as there may be money that you could use . And there might not be anything either but it would be worth a call to find out.

 

[ivan salis]

Re: Can someone explain what this "Guaranty Fund Certificate" is about

mutual fund type insurance companys are owned by the depositers of funds used to set it up -- there are no "stock holders" as such -- they get a set rate of interest on money "invested" in this case 5 % per year on the 30 dollars ($1.50) x 70 years = $105 plus the original $30 for total of $135 -- the 5% of interest due which is paid out when the board of directors says so (normally its yearly--but not always) --the item can be "redeemed" by the board of directors --by paying both any and all the interest owed to date and the base amount "invested" .

seems that several insurance companys are based in st paul --some blended together into what is now "travelers group" and some remained private --if the company went "public' and went into a stock company --you might have "original" owner stock rights --due to having money invested when they went from privately held to publicly held .-- if you had money invested --you got "original stock in the "new company"--how many shares depended upon how much you had invested at the time

unless it has been "redeemed" normally their stamped "void" or redeemed if so * or the company went out of bussiness (doubtful as insurance company that are failing are normally bought up by rivals and blended into their company) --it should be valid still

 

[Sheldon J]

Re: Can someone explain what this "Guaranty Fund Certificate" is about

mutual fund type insurance companys are owned by the depositers of funds used to set it up -- there are no "stock holders" as such -- they get a set rate of interest on money "invested" in this case 5 % per year on the 30 dollars ($1.50) x 70 years = $105 plus the original $30 for total of $135 -- the 5% of interest due which is paid out when the board of directors says so (normally its yearly--but not always) --the item can be "redeemed" by the board of directors --by paying both any and all the interest owed to date and the base amount "invested" .

seems that several insurance companys are based in st paul --some blended together into what is now "travelers group" and some remained private --if the company went "public' and went into a stock company --you might have "original" owner stock rights --due to having money invested when they went from privately held to publicly held .-- if you had money invested --you got "original stock in the "new company"--how many shares depended upon how much you had invested at the time

unless it has been "redeemed" normally their stamped "void" or redeemed if so * or the company went out of bussiness (doubtful as insurance company that are failing are normally bought up by rivals and blended into their company) --it should be valid still

Better recalculate wouldn't that interest be compounded hence first 31.50 then 5% on that etc... I would contact a stock broker if you have one. Just like a savings bond left past its due date still continues to grow....

 

[ipsilateral]

Re: Can someone explain what this "Guaranty Fund Certificate" is about

Simple interest on this is $140 making it worth $180 assuming that the paper is valid, that it says 1941, and that it doesn't compound in unknown ways.

 

[ivan salis]

Re: Can someone explain what this "Guaranty Fund Certificate" is about

if the 5% was not paid yearly --then of course it goes on increasing each year that its not paid in value ---thus year 1 --31.50 x 5% = $33.075 value year #2 ( $1.575 cent interest) compounding each year that it was not paid -- multiply the total amount owed by a simple interest of 5 % per year --over a 70 year peroid it adds up rapidly if the 5% per year "interest" was never paid out during that 70 year time frame ,(1941 to 2011) but rather just kept adding to the "base amount" in value that the 5% was paid on--it could be very worth while indeed .

there might be a good bit value in it via another way as well -- the blending of various insurance companies and their going "public" thus having original company stock attached to this -- since it was issued in 1941 thus after the great stockmarket crash of 1929 the insurance company most like survived and is in bussiness today or has blended with another company. -- the original owner would be the stock owner --her heirs would get the stock

you bet I'd check it out .

 

[Minrelica]

Re: Can someone explain what this "Guaranty Fund Certificate" is about

mutual fund type insurance companys are owned by the depositers of funds used to set it up -- there are no "stock holders" as such -- they get a set rate of interest on money "invested" in this case 5 % per year on the 30 dollars ($1.50) x 70 years = $105 plus the original $30 for total of $135 -- the 5% of interest due which is paid out when the board of directors says so (normally its yearly--but not always) --the item can be "redeemed" by the board of directors --by paying both any and all the interest owed to date and the base amount "invested" .

seems that several insurance companys are based in st paul --some blended together into what is now "travelers group" and some remained private --if the company went "public' and went into a stock company --you might have "original" owner stock rights --due to having money invested when they went from privately held to publicly held .-- if you had money invested --you got "original stock in the "new company"--how many shares depended upon how much you had invested at the time

unless it has been "redeemed" normally their stamped "void" or redeemed if so * or the company went out of bussiness (doubtful as insurance company that are failing are normally bought up by rivals and blended into their company) --it should be valid still

Thanks for schooling me, Ivan. I just learned something so that's good.

Not only do you sound like you know what you're talking about, I don't see anyone challenging your explanation so I will mark this thread as solved.

I still welcome any input anyone may have so reply if you have any info.

 

[Minrelica]

Re: Can someone explain what this "Guaranty Fund Certificate" is about

From the date that I can hardly read it looks like it was issued in the middle 40's and it looks like it was an interest bearing bond or as you see an Ins. bond that someone owned .
If the company is still around you might get this paid , also you need to check as the bond may still be in effect and has been gaining money the whole time .
I have some bonds that my Great grandmother left me that I have found after having them for 20 years that they have money value to them , we are now trying to find out how and where to cash them in as the company's that held the accounts have been bought up by other company's in the last 60 or so years .

Also you might check the lost funds and accounts office of your State , I found money that was owed to me there that I did not even know about and had been there for 30 years lol . This and other items may be in your States holding account . So I would make a few phone calls to find out. You never know as there may be money that you could use . And there might not be anything either but it would be worth a call to find out.

Thanks guys.

I'm not sure if I'll be making the phone calls personally but I'll definitely be steering my friend in the right direction.