What happens if my travel insurance company goes bankrupt?

The economic uncertainty in recent months have left many travelers wondering what happens to a policyholder if their travel insurance company goes bankrupt? Insurance is regulated at a State level with the requirement that licensed insurance companies maintain enough capital in reserves to pay policyholder claims. So what happens if there is not enough money in reserve to pay the losses? A State Guarantee Fund should provide a safety net with funds to guarantee claims from insurance companies that are insolvent and are unable to meet the policyholder liabilities.