Chapter 1 - CHARTS Y,Z
Life And Health Guaranty Association
Authorized/admitted insurers must become members of the state guaranty association as requirement to be issued a certificate of authority in that state.
Important Points:
1. Nonadmitted insurers are not members of the Life and Health Guaranty Association.
2. Surplus lines insurers are not members of the Life and Health Guaranty Association.
Z: What is the Life & Health Guaranty Association?
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An association of admitted insurers who have pledged money to protect policyholders insured by a member (admitted) insurer experiencing financial difficulty.
All insurance companies shall by and remain members of the Guaranty Association as a condition of their authority to transact business in a given state.
Guaranty Association Coverage Limits:
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The Association will not pay more than the following on any one life:
- $100,000 in cash surrender values
- $100,000 in present value annuities
- $100,000 in health benefits
- $300,000 in life death benefits
Note: These dollar amounts will be on the state exam and are generally national standards.
This concludes Chapter 1 - Click to continue to the Chapter 1 Exam
