What is the Life Insurance Company Guaranty Corporation of New York?
The Life Insurance Company Guaranty Corporation of New York was created by the New York legislature in 1985 to protect New York state residents who are policyholders and beneficiaries of policies issued by an impaired or insolvent life insurance company, up to specified limits. All life insurance companies licensed in New York to write life, accident or health insurance, annuity contracts or funding agreements, are required, as a condition of doing business in the state, to be members of the guaranty corporation. If a member company becomes impaired or insolvent, money to continue coverage and pay claims is obtained through assessments of the guaranty corporation’s other member insurance companies. All 50 states, the District of Columbia, and Puerto Rico have life insurance guaranty associations or corporations.
