What happens if my insurance company becomes insolvent?
Insurance companies are regulated by state insurance departments. When a state insurance commissioner determines that an insurance company is insolvent, the mechanism which springs into action to protect policyholders is called the "State Guaranty Association" system. All fifty states and the District of Columbia operate guaranty associations which may pay the claims of financially-impaired companies which operate in their state. The state legislatures determine the extent of coverage offered by the guaranty associations.
The table below provides an estimate of the coverage which may be available in your state. There are many issues, too numerous to describe here, which can influence the extent of any coverage which may actually be provided. Before you purchase an annuity, you are strongly urged to contact your state guaranty association or the consumer affairs division of your state's insurance department, to determine whether there would be any coverage in your situation.
Estimated Coverage Offered by the State Guaranty Associations
| State | Estimated coverage for an annuity | Guaranty association phone number | |||
|---|---|---|---|---|---|
| Alabama | $100,000 | (334) 269-3550 | |||
| Alaska | $100,000 | (907) 465-2515 | |||
| Arizona | $100,000 | (602) 912-8400 | |||
| Arkansas | $300,000 | (501) 371-2600 | |||
| California | (80% of) $100,000 | (916) 492-3500 | |||
| Colorado | $100,000 | (303) 894-7499 | |||
| Connecticut | $100,000 | (860) 297-3802 | |||
| Delaware | $100,000 | (302) 739-4251 | |||
| Dist. of Col. | $300,000 | (202) 727-8000 | |||
| Florida | $300,000 in present value of annuity benefits / $100,000 in net cash surrender and withdrawal values | (850) 922-3101 | |||
| Georgia | $100,000 | (404) 656-2056 | |||
| Hawaii | $100,000 | (808) 586-2790 | |||
| Idaho | $300,000 in present value of annuity benefits / $100,000 in net cash surrender and withdrawal values | (208) 334-4250 | |||
| Illinois | $100,000 | (217) 785-0116 | |||
| Indiana | $100,000 | (317) 232-2385 | |||
| Iowa | $100,000 | (515) 281-5705 | |||
| Kansas | $100,000 | (785) 296-7081 | |||
| Kentucky | $100,000 | (502) 564-6027 | |||
| Louisiana | $100,000 | (225) 342-5423 | |||
| Maine | $100,000 | (207) 624-8475 | |||
| Maryland | $100,000 | (410) 468-2090 | |||
| Massachusetts | $100,000 | (617) 521-7794 | |||
| Michigan | $100,000 | (517) 373-9273 | |||
| Minnesota | $300,000 in present value of annuity benefits / $100,000 in net cash surrender and withdrawal values | (651) 296-6848 | |||
| Mississippi | $100,000 | (601) 359-3569 | |||
| Missouri | $100,000 | (573) 751-4126 | |||
| Montana | $100,000 | (406) 444-2040 | |||
| Nebraska | $100,000 | (402) 471-2201 | |||
| Nevada | $100,000 | (775) 687-4270 | |||
| New Hampshire | $100,000 | (603) 271-2261 | |||
| New Jersey | $500,000 in present value of annuity benefits / $100,000 in net cash surrender and withdrawal values | (973) 623-3989 | |||
| New Mexico | $100,000 | (505) 827-4601 | |||
| New York | $500,000 | (212) 480-2289 | |||
| No. Carolina | $300,000 | (919) 733-7349 | |||
| North Dakota | $100,000 | (701) 328-2440 | |||
| Ohio | $100,000 | (614) 644-2658 | |||
| Oklahoma | $300,000 | (405) 521-2828 | |||
| Oregon | $100,000 | (503) 947-7980 | |||
| Pennsylvania | $100,000 | (717) 783-0442 | |||
| Rhode Island | $100,000 | (401) 222-2223 | |||
| So. Carolina | $300,000 | (803) 737-6160 | |||
| South Dakota | $100,000 | (605) 773-3563 | |||
| Tennessee | $100,000 | (615) 741-2241 | |||
| Texas | $100,000 | (512) 463-6464 | |||
| Utah | $200,000 | (801) 538-3800 | |||
| Vermont | $100,000 | (802) 828-3301 | |||
| Virginia | $100,000 | (804) 371-9741 | |||
| Washington | $500,000 | (360) 753-7301 | |||
| West Virginia | $100,000 | (304) 558-3394 | |||
| Wisconsin | $300,000 | (608) 267-1233 | |||
| Wyoming | $100,000 | (307) 777-7401 | |||
| Disclaimer: ImmediateAnnuities.com is not to be held responsible for the accuracy of this information. You are advise to call your state insurance department to confirm the information in this table. | |||||
