IMPORTANT INFORMATION ABOUT COVERAGE UNDER THE  TEXAS LIFE, ACCIDENT, HEALTH AND HOSPITAL SERVICE INSURANCE GUARANTY ASSOCIATION

(For insurers declared insolvent or impaired on or after September 1, 2005)

It is possible that the Association may not cover your policy in full or in part due to statutory limitations.

Eligibility for Protection by the Association

When a member insurance company is found to be insolvent and placed under an order of liquidation by a court or designated as impaired by the Texas Commissioner of Insurance, the Association provides coverage to policyholders who are:

• Residents of Texas at that time (irrespective of the policyholder's residency at policy issue)

• Residents of other states, ONLY if the following conditions are met:
  1. The policyholder has a policy with a company domiciled in Texas;
  2. The policyholder’s state of residence has a similar guaranty association; and
  3. The policyholder is not eligible for coverage by the guaranty association of the policyholder’s state of residence.

Limits of Protection by the Association

Accident, Accident and Health, or Health Insurance:

• For each individual covered under one or more policies:  up to a total of $500,000 for basic hospital, medical-surgical, and major medical insurance, $300,000 for disability or long term care insurance, and $200,000 for other types of health insurance.

Life Insurance:

• Net cash surrender value or net cash withdrawal value up to a total of $100,000 under one or more policies on any one life; or

• Death benefits up to a total of $300,000 under one or more policies on any one life; or

• Total benefits up to a total of $5,000,000 to any owner of multiple non-group life policies.

Individual Annuities:

• Present value of benefits up to a total of $100,000 under one or more contracts on any one life.

Group Annuities:

• Present value of allocated benefits up to a total of $100,000 on any one life; or

• Present value of unallocated benefits up to a total of $5,000,000 for one contractholder regardless of the number of contracts.

Aggregate Limit:

• $300,000 on any one life with the exception of the $500,000 health insurance limit, the $5,000,000 multiple owner life insurance limit, and the $5,000,000 unallocated group annuity limit.

Insurance companies and agents are prohibited by law from using the existence of the Association for the purpose of sales, solicitation, or inducement to purchase any form of insurance.  When you are selecting an insurance company, you should not rely on Association coverage.

The one-page version of the above information that was approved by the Texas Commissioner of Insurance on January 14, 2008 and applies to all insolvencies occurring on or after September 1, 2005 may also be downloaded in Portable Document Format (PDF) by clicking on the file shown below.

TLAHHSIGA Summary Document.pdf