What is a life & health insurance guaranty association?
Life & health insurance guaranty associations were created to protect state residents who are policyholders and beneficiaries of policies issued by a life or health insurance company that has gone out of business. All 50 states, the District of Columbia, and Puerto Rico have life and health insurance guaranty associations. All insurance companies (with limited exceptions) licensed to write life and health insurance or annuities in a state are required to be members of the state’s life and health insurance guaranty association. If a member company becomes insolvent (goes out of business), the state guaranty association obtains money to continue coverage and pay claims from member insurance companies writing the same line or lines of insurance as the insolvent company.
Related Questions
- What will happen to my insurance coverage if the Iowa Life & Health Insurance Guaranty Association becomes liable for my policy?
- What is the South Carolina Life and Accident and Health Insurance Guaranty Association (SCLAHIGA)?
- When might the Iowa Life & Health Insurance Guaranty Association provide benefits?
