To get things straight, this Association is only for Californians. If you reside in other states, you can continue to read and discover if your own state has a similar association. If not, you could ask your local Congress people to look at getting you a similar organization, one whose basis is the California model. Until your state begins one, you will have another reason to be jealous of your neighbors who have the Californian Life and Health Insurance Guarantee Association.
What Is It, Then?
The people of California are all protected by the California Life and Health Insurance Guarantee Association as it supports the insurance policies of those insurance companies who even go bankrupt. Even with a slow economy and certainty of recession, it is great knowing that your life and health insurance are two things you know longer need have to worry.
The California Life and Health Insurance Guarantee Association began in 1991 with Governor Pete Wilson; a bill was passed and made California law with the same name as the association.
These people check on all policies to be certain those of defunct companies are covered and that the members receive all that they have paid for. It also protects Individual Retirement Accounts.
How Does It Work?
When an insurance company is insolvent, it is dissolved. The policy holders then are contacted by California's Department of Insurance through the mail. Only way an insurance company can be declared dissolved is by way of the court. The California Life and Health Insurance guarantee Association will strive to support you as soon as they can. The time varies from person to person.
All those insurance companies who do business in California are the structure of the monies for this Association. Those companies help provide the complete funding for the California Life and Health Insurance Guarantee Association, and not from tax money.
The Association does not have authority to rewrite the laws or policies. They can not give legal advice out either. They try to understand what facets your policy handles and get you the money they can. You are guaranteed coverage only up to $100,000 for life insurance. If your original life policy exceeds that amount, it is just awful.
There is a website provided by the association to furnish free information to all Californians. Included is a list of all insurance companies who are insolvent since 1991. Presently listed are thirty-two insurance companies.