Are all life and health insurance policies and annuity contracts protected by the guaranty association?
No. The following is a listing of some of the types of policies, contracts and other benefits not covered by the guaranty association: Policies with insurers not licensed to do business in Delaware; Health Maintenance Organization (HMO) contracts; contracts issued by a hospital or medical service organization; reinsurance contracts; policy benefits the insurer does not guarantee or for which the policyholder bears the risk (such as the non-guaranteed portion of a variable life insurance or annuity contract); self-insured employer plans; interest rate yields that exceed an average rate; and fraternal benefit society insurance certificates. Certain, less commonly known insurance policies and arrangements not listed here are also not protected. If you are unsure about whether your policy is excluded from guaranty association protection, you should review the current Guaranty Association Act (a link to the Act can be found in the Additional Info section).
