Reference Source

State life and health insurance guaranty association benefit limits — how much is protected if your insurer fails

Every US state runs a life/health insurance guaranty association — a state-chartered backstop, funded by assessments on other insurers, that pays policyholders (up to a cap) if their life, annuity, disability, long-term-care or health insurer becomes insolvent. FDIC/SIPC-style protection, but almost nobody outside the insurance industry knows it exists or what it actually covers, because unlike bank deposit insurance there is no single federal number — each state sets its own dollar caps by statute, and the caps genuinely differ: California caps life death benefit at $300,000 and lumps all health benefits into one $200,000, CPI-adjusted figure; Florida caps life at just $100,000 (cash value only) but health benefit plans at $500,000; Virginia splits accident-and-sickness coverage into four separate tiers (general, disability income, long-term care, health benefit plans) with different caps for each. Answers 'is my life insurance policy protected if the company goes under', 'how much of my annuity would I actually get back', and 'why did my neighbor in another state get a different payout' — the kind of question someone asks in the middle of an actual insurer failure, when the industry's own explainer (NOLHGA) is a member-funded index, not a citable comparison table.

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LicenceUS state statutes, public domain. State statutory text is government work; NOLHGA's own compiled index is excluded from sourcing per its terms of use.

The data

StateLife insurance death benefit cap ($)Life insurance cash value cap ($)Annuity present value cap ($)Health insurance benefit cap ($)Aggregate cap per life ($)Per-owner cap across multiple policies ($)Additional percentage limitStatute sectionDisability income / long-term care benefit cap ($)Other accident & sickness cover cap ($)
California$300,000$100,000$250,000$200,000$300,000$5,000,000Eighty percent of the contractual obligations1067.02
Florida$300,000$100,000$250,000$500,000631.717$300,000
Illinois$300,000$100,000$250,000$500,000$300,000$5,000,000531.03$300,000$100,000
OhioThree hundred thousand dollarsone hundred thousand dollarsTwo hundred fifty thousand dollarsFive hundred thousand dollarsthree hundred thousand dollars3956.04Three hundred thousand dollarsOne hundred thousand dollars
Virginia$300,000$100,000$250,000$500,000$350,000$5 million38.2-1700$300,000$100,000

Where this came from

Every record above links the page it was taken from and quotes the sentence that states it. These are the 5 sources this dataset was assembled from.

Machine-readable

5 records. last verified against source . due for re-check by .

Licence. US state statutes, public domain. State statutory text is government work; NOLHGA's own compiled index is excluded from sourcing per its terms of use.