asset_type: jurisdictional-variation

body: 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.

key_field: jurisdiction

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.

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

type: dataset


body:
**State:** California

**Life insurance death benefit cap ($):** $300,000

**Life insurance cash value cap ($):** $100,000

**Annuity present value cap ($):** $250,000

**Health insurance benefit cap ($):** $200,000

**Aggregate cap per life ($):** $300,000

**Per-owner cap across multiple policies ($):** $5,000,000

**Additional percentage limit:** Eighty percent of the contractual obligations

**Statute section:** 1067.02

> (c) The benefits for which the association may become liable for life insurance and annuity policies shall in no event exceed the lesser of the following: (1) Eighty percent of the contractual obligations for each policy or contract as modified pursuant to subparagraph (C) of paragraph (2) of subdivision (b), for which the insurer is liable or would have been liable if it were not an impaired or insolvent insurer. (2) (A) With respect to any one life, regardless of the number of policies or contracts: (i) Three hundred thousand dollars ($300,000) in life insurance death benefits, but not more than one hundred thousand dollars ($100,000) in net cash surrender and net cash withdrawal values for life insurance. (ii) Two hundred fifty thousand dollars ($250,000) in the present value of annuity benefits, including net cash surrender and net cash withdrawal values. (B) With respect to each payee of a structured settlement annuity, or beneficiaries of the payee if deceased, two hundred fifty thousand dollars ($250,000) in present value annuity benefits, in the aggregate, including net cash surrender and net cash withdrawal values. (C) Notwithstanding subparagraphs (A) and (B), in no event shall the association be obligated to cover more than an aggregate of three hundred thousand dollars ($300,000) in benefits with respect to any one life under subparagraphs (A) and (B). (D) Notwithstanding subparagraphs (A), (B), and (C), with respect to one owner of multiple nongroup policies of life insurance, whether the policy owner is an individual, firm, corporation, or other person, and whether the persons insured are officers, managers, employees, or other persons, in no event shall the association be obligated to cover more than five million dollars ($5,000,000) in benefits, regardless of the number of policies and contracts held by the owner. (d) The health insurance benefits for which the association may become liable shall in no event exceed the lesser of the following: (1) The contractual obligations for which the insurer is liable or for which the insurer would have been liable if it were not an impaired or insolvent insurer. (2) With respect to any one individual receiving health care benefits, regardless of the number of policies or contracts, two hundred thousand dollars ($200,000) in health insurance benefits; an amount that shall increase or decrease based upon changes in the health care cost component of the consumer price index from January 1, 1991, to the date on which the insurer becomes an insolvent insurer.

Source: <https://leginfo.legislature.ca.gov/faces/codes_displayText.xhtml?lawCode=INS&division=1.&title=&part=2.&chapter=1.&article=14.7>

jurisdiction: California

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

type: jurisdictional-variation


body:
**State:** Florida

**Life insurance death benefit cap ($):** $300,000

**Life insurance cash value cap ($):** $100,000

**Annuity present value cap ($):** $250,000

**Health insurance benefit cap ($):** $500,000

**Disability income / long-term care benefit cap ($):** $300,000

**Statute section:** 631.717

> (12) The association’s liability for the contractual obligations of the insolvent insurer must be as great as, but no greater than, the contractual obligations of the insurer in the absence of such insolvency, unless such obligations are reduced as permitted by subsection (4), but the aggregate liability of the association with respect to one life shall not exceed the following: (a) For life insurance, $100,000 in net cash surrender and net cash withdrawal values. (b) For deferred annuity contracts, $250,000 in net cash surrender and net cash withdrawal values. (c) For all other benefits, including in long-term care policies, $300,000, including cash values, except as provided in paragraph (d). (d) Effective January 1, 2020, for basic hospital expense health insurance policies, basic medical-surgical health insurance policies, or major medical expense health insurance policies, but not including long-term care policies, $500,000. In no event is the association liable for any penalties or interest.

Source: <http://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0600-0699/0631/Sections/0631.717.html>

jurisdiction: Florida

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


body:
**State:** Illinois

**Life insurance death benefit cap ($):** $300,000

**Life insurance cash value cap ($):** $100,000

**Annuity present value cap ($):** $250,000

**Health insurance benefit cap ($):** $500,000

**Other accident & sickness cover cap ($):** $100,000

**Disability income / long-term care benefit cap ($):** $300,000

**Aggregate cap per life ($):** $300,000

**Per-owner cap across multiple policies ($):** $5,000,000

**Statute section:** 531.03

> (A) $300,000 in life insurance death benefits, | | but not more than $100,000 in net cash surrender and net cash withdrawal values for life insurance; | | (B) for health insurance benefits: (I) $100,000 for coverages not defined as | | disability income insurance or health benefit plans or long-term care insurance, including any net cash surrender and net cash withdrawal values; | | (II) $300,000 for disability income insurance | | and $300,000 for long-term care insurance; and | | (III) $500,000 for health benefit plans; (C) $250,000 in the present value of annuity | | benefits, including net cash surrender and net cash withdrawal values; | | (ii) with respect to each individual participating in | | a governmental retirement benefit plan established under Section 401, 403(b), or 457 of the U.S. Internal Revenue Code covered by an unallocated annuity contract or the beneficiaries of each such individual if deceased, in the aggregate, $250,000 in present value annuity benefits, including net cash surrender and net cash withdrawal values; | | (iii) with respect to each payee of a structured | | settlement annuity or beneficiary or beneficiaries of the payee if deceased, $250,000 in present value annuity benefits, in the aggregate, including net cash surrender and net cash withdrawal values, if any; or | | (iv) with respect to either (1) one contract owner | | provided coverage under subparagraph (ii) of paragraph (c) of subsection (1) of this Section or (2) one plan sponsor whose plans own directly or in trust one or more unallocated annuity contracts not included in subparagraph (ii) of paragraph (b) of this subsection, $5,000,000 in benefits, irrespective of the number of contracts with respect to the contract owner or plan sponsor. However, in the case where one or more unallocated annuity contracts are covered contracts under this Article and are owned by a trust or other entity for the benefit of 2 or more plan sponsors, coverage shall be afforded by the Association if the largest interest in the trust or entity owning the contract or contracts is held by a plan sponsor whose principal place of business is in this State. In no event shall the Association be obligated to cover more than $5,000,000 in benefits with respect to all these unallocated contracts. | | In no event shall the Association be obligated to cover more than (1) an aggregate of $300,000 in benefits with respect to any one life under subparagraphs (i), (ii), and (iii) of this paragraph (b) except with respect to benefits for health benefit plans under item (B) of subparagraph (i) of this paragraph (b), in which case the aggregate liability of the Association shall not exceed $500,000 with respect to any one individual or (2) with respect to one owner of multiple nongroup policies of life insurance, whether the policy or contract owner is an individual, firm, corporation, or other person and whether the persons insured are officers, managers, employees, or other persons, $5,000,000 in benefits, regardless of the number of policies and contracts held by the owner.

Source: <https://www.ilga.gov/legislation/ilcs/fulltext.asp?DocName=021500050K531.03>

jurisdiction: Illinois

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


aggregate_per_life_cap_usd: three hundred thousand dollars

annuity_present_value_usd: Two hundred fifty thousand dollars

body:
**State:** Ohio

**Life insurance death benefit cap ($):** Three hundred thousand dollars

**Life insurance cash value cap ($):** one hundred thousand dollars

**Annuity present value cap ($):** Two hundred fifty thousand dollars

**Health insurance benefit cap ($):** Five hundred thousand dollars

**Other accident & sickness cover cap ($):** One hundred thousand dollars

**Disability income / long-term care benefit cap ($):** Three hundred thousand dollars

**Aggregate cap per life ($):** three hundred thousand dollars

**Statute section:** 3956.04

> (D) The benefits for which the association may become liable shall not exceed the lesser of either of the following: (1) The contractual obligations for which the member insurer is liable or would have been liable if it were not an impaired or insolvent insurer; (2)(a) With respect to any one life, regardless of the number of policies or contracts: (i) Three hundred thousand dollars for life insurance death benefits, but not more than one hundred thousand dollars in net cash surrender and net cash withdrawal values for life insurance; (ii) One hundred thousand dollars for health insurance benefits other than health benefit plan coverage, disability income insurance, or long-term care insurance, including any net cash surrender and net cash withdrawal values; (iii) Three hundred thousand dollars for disability income insurance; (iv) Three hundred thousand dollars for long-term care insurance; (v) Five hundred thousand dollars for health benefit plan coverage; (vi) Two hundred fifty thousand dollars for the present value of annuity benefits, including net cash surrender and net cash withdrawal values. (b) With respect to each individual participating in a governmental retirement plan established under section 401, 403(b), or 457 of the "Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 1, as amended, and covered by an unallocated annuity contract, or the beneficiaries of each such individual if deceased, in the aggregate, two hundred fifty thousand dollars in present value annuity benefits, including net cash surrender and net cash withdrawal values. The association is not liable to expend more than three hundred thousand dollars in the aggregate with respect to any one individual under divisions (D)(2)(a), (b), and (d) of this section combined, except with respect to benefits for health benefit plan coverage under division (D)(2)(a)(v) of this section, in which case the aggregate liability of the association shall not exceed five hundred thousand dollars with respect to any one individual. (c) With respect to any one contract holder, covered by any unallocated annuity contract not included in division (D)(2)(b) of this section, five million dollars in benefits, irrespective of the number of contracts held by that contract holder.

Source: <https://codes.ohio.gov/ohio-revised-code/section-3956.04>

disability_ltc_benefit_usd: Three hundred thousand dollars

general_health_benefit_usd: One hundred thousand dollars

health_benefit_usd: Five hundred thousand dollars

jurisdiction: Ohio

life_cash_value_usd: one hundred thousand dollars

life_death_benefit_usd: Three hundred thousand dollars

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


body:
**State:** Virginia

**Life insurance death benefit cap ($):** $300,000

**Life insurance cash value cap ($):** $100,000

**Annuity present value cap ($):** $250,000

**Health insurance benefit cap ($):** $500,000

**Other accident & sickness cover cap ($):** $100,000

**Disability income / long-term care benefit cap ($):** $300,000

**Aggregate cap per life ($):** $350,000

**Per-owner cap across multiple policies ($):** $5 million

**Statute section:** 38.2-1700

> D. The benefits that the Association may become obligated to cover shall in no event exceed the lesser of: 1. The contractual obligations for which the insurer is liable or would have been liable if it were not an impaired or insolvent insurer; or 2. With respect to: a. One life, regardless of the number of policies or contracts: (1) $300,000 in life insurance death benefits, but not more than $100,000 in net cash surrender and net cash withdrawal values for life insurance; (2) For accident and sickness insurance benefits, (i) $100,000 for coverage not defined as disability income insurance, health benefit plans, or long-term care insurance including any net cash surrender and net cash withdrawal values; (ii) $300,000 for disability income insurance and $300,000 for long-term care insurance; and (iii) $500,000 for health benefit plans; and (3) $250,000 in the present value of annuity benefits, including net cash surrender and net cash withdrawal values; b. Each individual participating in a benefit plan established under Section 401, 403(b) or 457 of the U.S. Internal Revenue Code who (i) selected an investment option that includes investment in unallocated annuity contracts and (ii) is covered by such an unallocated annuity contract, including the beneficiaries of each such individual if deceased, in the aggregate, $250,000 in present value of annuity benefits, including net cash surrender and net cash withdrawal values; c. Each payee of a structured settlement annuity (or beneficiary or beneficiaries of the payee if deceased), $250,000 in present value annuity benefits, in the aggregate, including net cash surrender and net cash withdrawal values, if any; and d. One plan sponsor whose plans own directly or in trust one or more unallocated annuity contracts part or all of any of which is not included in subdivision 2 b, $5 million in benefits, irrespective of the number of contracts with respect to the plan sponsor. However, in the case where one or more unallocated annuity contracts are covered contracts under this chapter and are owned by a trust or other entity for the benefit or two or more plan sponsors, coverage shall be afforded by the Association if the largest interest in the trust or entity owning the contract or contracts is held by a plan sponsor whose principal place of business is in the Commonwealth and in no event shall the Association be obligated to cover more than $5 million in benefits with respect to all such unallocated contracts. e. In no event shall the Association be obligated to cover (i) more than an aggregate of $350,000 in benefits with respect to any one life under subdivisions D 2 a, b, and c except with respect to benefits for health benefit plans under subdivision D 2 a (2), in which case the aggregate liability of the Association shall not exceed $500,000 with respect to any one individual, or (ii) with respect to one owner of multiple nongroup policies of life insurance, whether the policy or contract owner is an individual, firm, corporation, or other person, and whether the persons insured are officers, managers, employees, or other persons, more than $5 million in benefits, regardless of the number of policies and contracts held by the owner.

Source: <https://law.lis.virginia.gov/vacodefull/title38.2/chapter17/>

jurisdiction: Virginia

per_owner_multi_policy_cap_usd: $5 million

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