The Guaranty Corporation is a statutory entity created in 1970 when the Maryland General Assembly enacted the Life and Health Insurance Guaranty Corporation Act. The form of organization and name of the Corporation was changed by legislation in 1980. The Guaranty Corporation is composed of all insurers licensed to sell life insurance, accident and health insurance, and individual annuities in the State of Maryland.
Under the Guaranty Corporation Act, the Corporation provides limited protection to Maryland residents who are holders of life and health insurance policies and individual annuities issued by the Guaranty Corporation's member insurers in the event that the insurers which issued the insurance policy or individual annuity became insolvent. The Guaranty Corporation is governed by a Board of Directors elected by and from its member insurers.
It operates under the supervision of the Maryland Insurance Commissioner. When an insolvent member insurer is also licensed in states other than Maryland, the Guaranty Corporation generally cooperates with those states guaranty associations under the auspices of the National Organization of Life & Health Insurance Guaranty Associations.
Under the Guaranty Corporation Act, the Corporation provides limited protection to Maryland residents who are holders of life and health insurance policies and individual annuities issued by the Guaranty Corporation's member insurers in the event that the insurers which issued the insurance policy or individual annuity became insolvent. The Guaranty Corporation is governed by a Board of Directors elected by and from its member insurers.
It operates under the supervision of the Maryland Insurance Commissioner. When an insolvent member insurer is also licensed in states other than Maryland, the Guaranty Corporation generally cooperates with those states guaranty associations under the auspices of the National Organization of Life & Health Insurance Guaranty Associations.
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In most cases, the Guaranty Corporation will continue coverage as long as premiums are paid or cash value exists.
It may do this directly, or, most often, it may transfer the policy to another insurance company.
In any case, policyholders should continue making premium payments to keep their coverage in force.
Coverage is determined by Maryland law and policy language at the time the Guaranty Corporation is activated to provide protection (when the member insurer is found to be insolvent and ordered liquidated by a court).
It may do this directly, or, most often, it may transfer the policy to another insurance company.
In any case, policyholders should continue making premium payments to keep their coverage in force.
Coverage is determined by Maryland law and policy language at the time the Guaranty Corporation is activated to provide protection (when the member insurer is found to be insolvent and ordered liquidated by a court).
Below is a list of insurance company insolvencies for which the Maryland guaranty association has been activated to provide protection to Maryland policyholders.
Please be advised: this list may not include every insolvent insurer that has affected this state's policyholders.
You may be able to find additional information at the website for the Maryland Insurance Administration.
Please be advised: this list may not include every insolvent insurer that has affected this state's policyholders.
You may be able to find additional information at the website for the Maryland Insurance Administration.
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