June 2010
A Quick Guide To State Life & Health Guaranty Associations
By Bill Douglas, Compliance Manager, Individual Annuities
Are you up to date on the liability limits and regulations for the state Life & Health Guaranty Association(s) where you do business? Here’s a quick refresher course and a table for use as a reference guide.
Most states have funds in their Life & Health Guaranty Associations to help pay life and health claims of financially insolvent insurance companies. Those funds are held by each state’s Life & Health Guaranty Association. Each state’s laws and regulations note which lines of insurance are covered under the association funds and identify any payment limits.
Coverage generally applies to individual policyholders and their beneficiaries. Numerous issues determine the type and extent of coverage available under the guaranty association funds. Marketing-related rules include two key points:
- Producers and insurance carriers are not allowed to use the existence of the states’ Life & Health Guaranty Associations as part of their advertising or point-of-sale presentation.
- A number of states require the insurance carrier to provide a notice regarding the state’s Life & Health Guaranty Association coverage at the time the contract is issued.
Annuity Liability Limits
The following table provides you with updated information about annuity coverage limits under the various states’ guaranty associations.
Many changes may occur for each state’s coverage types and limits. The following table is to be used only as a guide. Though we believe the information is correct as of this publication date, it is not intended as legal advice and no liability is assumed in connection with its use. For specific questions, call the state or click on the state name to visit the Life & Health Guaranty Association website.
| State | Maximum Liability Present Value of Annuity | Phone Number |
|---|---|---|
| Alabama | $300,000* | (205) 879-2202 |
| Alaska | $100,000 | (907) 243-2311 |
| Arizona | $100,000 | (602) 364-3863 |
| Arkansas | $300,000 | (501) 375-9151 |
| California1 | $100,000 | (323) 782-0182 |
| Colorado | $250,000 | (303) 292-5022 |
| Connecticut | $500,000 | (860) 647-1054 |
| Delaware | $250,000 | (302) 456-3656 |
| District of Columbia | $300,000 | (202) 434-8771 |
| Florida | $300,000* | (904) 398-3644 |
| Georgia | $300,000* | (770) 621-9835 |
| Hawaii | $100,000 | (808) 528-5400 |
| Idaho | $250,000 | (208) 378-9510 |
| Illinois | $100,000 | (773) 714-8050 |
| Indiana | $100,000 | (317) 636-8204 |
| Iowa | $250,000 | (515) 248-5712 |
| Kansas | $250,000 | (785) 271-1199 |
| Kentucky | $250,000 | (502) 895-5915 |
| Louisiana | $250,000 | (225) 381-0656 |
| Maine | $250,000 | (207) 633-1090 |
| Maryland | $100,000 | (410) 998-3907 |
| Massachusetts | $100,000 | (413) 744-8483 |
| Michigan | $250,000** | (517) 339-1755 |
| Minnesota | $250,000*** | (651) 407-3149 |
| Mississippi | $100,000 | (601) 981-0755 |
| Missouri | $100,000 | (573) 634-8455 |
| Montana | $100,000 | (262) 965-5761 |
| Nebraska | $100,000 | (402) 474-6900 |
| Nevada | $100,000 | (775) 329-6171 |
| New Hampshire | $100,000 | (603) 226-9114 |
| New Jersey | $500,000* | (973) 226-9114 |
| New Mexico | $300,000* | (505) 820-7355 |
| New York | $500,000 | (212) 202-4243 |
| North Carolina | $300,000 | (919) 833-6838 |
| North Dakota | $100,000 | (701) 235-4108 |
| Ohio | $250,000 | (614) 442-6601 |
| Oklahoma | $300,000 | (405) 272-9221 |
| Oregon | $250,000 | (503) 588-1974 |
| Pennsylvania | $300,000* | (610) 975-1572 |
| Rhode Island | $250,000 | (401) 273-2921 |
| South Carolina | $300,000 | (803) 276-0271 |
| South Dakota | $100,000 | (605) 336-0177 |
| Tennessee | $250,000 | (615) 242-8758 |
| Texas | $100,000 | (512) 476-5101 |
| Utah | $250,000 | (801) 320-9955 |
| Vermont | $250,000 | (802) 229-3553 |
| Virginia | $250,000 | (804) 282-2240 |
| Washington | $500,000 | (360) 426-6744 |
| West Virginia | $250,000 | (304) 733-6904 |
| Wisconsin | $300,000 | (608) 242-9473 |
| Wyoming | $100,000 | (303) 292-5022 |
1 Benefits for annuities in California are covered at 80% of the contractual obligation, subject to the guaranty association coverage limits.
*Provides the maximum coverage limit if the annuity is in the payout phase. If the annuity is not in the payout phase, the limit is $100,000.
**Provides a $250,000 coverage limit for certain retirement annuities. Other annuities have a coverage limit of $100,000.
***The $250,000 coverage limit is for net cash surrender and net cash withdrawal values. If the annuity has been annuitized, the coverage limit is $410,000.