4. False is correct. There is no such thing as the Federal Life Insurance Protection Corporation (FLIPC). Each state has a structure for a Guaranty Fund for failed insurers, but they don’t insure policy values up to a maximum (as the FDIC does for banks, for example). When a failure occurs, the Guaranty Fund will assess remaining viable insurers for money to eventually pay the claims of the failed insurer. Therefore, it’s wise for consumers to buy from insurance companies that have high ratings from one or more independent rating agencies.