What is the Virginia Life, Accident & Sickness Insurance Guaranty Association?
The Virginia Life, Accident & Sickness Insurance Guaranty Association was created by the Virginia Legislature in 1976 to protect residents who are policyholders and beneficiaries of policies issued by an insolvent insurance company, up to specified limits. All insurance companies (with limited exceptions) licensed to write life and health insurance or annuities in Virginia are required, as a condition of doing business in the Commonwealth, to be members of the guaranty association. If a member company becomes insolvent, money to continue coverage and pay claims is raised by assessing the guaranty association’s other member insurance companies writing the same line or lines of insurance as the insolvent company. All 50 states, the District of Columbia, and Puerto Rico have life and health insurance guaranty associations.
