Business Details
50+ Years
experience
Connecticut Insurance Guaranty Protection
Established in 1972 by the Connecticut legislature, our organization serves as a critical safety net for residents facing insurance company insolvencies. We provide statutory protection for life, health, and annuity policyholders up to specified limits, ensuring continuity of coverage when insurers fail. Our operations are governed by the Connecticut Life and Health Insurance Guaranty Association Act, which mandates membership for all insurers licensed in the state. We collaborate with state insurance departments and receivers to administer claims and transfer policies to solvent carriers when necessary. Our protections extend to individual annuities, healthcare center contracts, and group policies, with coverage limits of $500,000 per insured life.While we cannot provide legal advice or comment on specific policies, our website offers comprehensive resources about insurance insolvency processes. We work closely with the Connecticut Insurance Department to maintain regulatory compliance and public transparency. Our statutory framework ensures policyholders receive maximum protection under state law, with assessments collected from solvent member companies to fund claims. We emphasize consumer education about insurance company selection and financial stability, while prohibiting agents from using our existence as a marketing tool. Our role remains strictly defined by legislative mandates, focusing solely on protecting Connecticut residents during insurance industry failures.
Services
Life Insurance Coverage
Health Insurance Protection
Annuity Guarantees
Policy Transfer Services
Claims Administration
Details
- Year established: 1972
Highlights and features
- We provide statutory insurance protection mandated by Connecticut law
- Coverage up to $500,000 per insured life for multiple policy types
- Collaborate with state insurance departments for seamless policy transfers
- Administer claims through established liquidation processes
- Maintain transparency through comprehensive statutory compliance
Services
Life Insurance Coverage
We provide up to $500,000 in death benefit and cash surrender protection per insured life when licensed insurers fail. This statutory coverage continues existing policies through transfers to solvent carriers or direct administration. Policyholders must maintain premium payments to keep coverage active during liquidation proceedings.
Health Insurance Protection
Health insurance policies receive up to $500,000 in claims protection per insured life. Coverage includes individual and group policies, with potential 30-day termination notices for cancelable plans. We work with receivers to ensure uninterrupted medical coverage during insurer liquidation processes.
Annuity Guarantees
Individual annuity contracts receive up to $500,000 in present value protection per contract owner. Variable annuities receive limited coverage for guaranteed portions only. Excess amounts become creditor claims against the insolvent company's estate during liquidation.
Policy Transfer Services
We facilitate seamless policy transfers to financially sound insurers during liquidation proceedings. This process maintains policy terms and coverage limits while ensuring continued premium collection and claims administration through established industry partnerships.
Claims Administration
We administer insurance claims through existing staff or third-party processors during liquidation. Hardship provisions allow emergency benefit continuation while courts resolve company assets. Policyholders receive detailed instructions about ongoing claims procedures from court-appointed receivers.
Questions
What happens when my insurance company becomes insolvent?
We provide continued coverage up to statutory limits through policy transfers or direct administration. Premium payments must continue to maintain coverage during liquidation proceedings.
How much insurance coverage does the guaranty association protect?
Protection limits are $500,000 per insured life for life insurance, health insurance, annuities, and healthcare center contracts. Aggregate limits apply across multiple policies.
Are variable annuities covered by the guaranty association?
Variable annuities with general account guarantees receive coverage subject to statutory limits and exclusions. Non-guaranteed portions receive no protection.
How do I check if my insurer is licensed in Connecticut?
Contact the Connecticut Insurance Department at 860.297.3900 to verify an insurer's licensing status and financial standing.
Can I receive emergency funds from my annuity during company rehabilitation?
Hardship withdrawals may be approved on a case-by-case basis through the court-appointed receiver for urgent medical or financial needs.
Is long-term care insurance covered by the guaranty association?
Yes, long-term care policies receive the same $500,000 per life protection as other health insurance policies under Connecticut law.
