The Rhode Island Life & Health Insurance Guaranty Association is a statutory entity created in 1985 when the Rhode Island General Assembly enacted the Rhode Island Guaranty Association Act. The guaranty association is composed of all legal reserve insurers licensed to sell life insurance, accident and health insurance, and individual annuities in the state of Rhode Island.
In the event that a member insurer is found to be insolvent and is ordered to be liquidated by a court, the Guaranty Association Act enables the guaranty association to provide protection (up to the limits spelled out in the Act) to Rhode Island residents who are holders of life and health insurance policies and individual annuities with the insolvent insurer.
Specifically, when a member insurer is found to be insolvent and is ordered liquidated, a special deputy receiver takes over the insurer under court supervision and processes the assets and liabilities through liquidation. The task of servicing the insurance company's policies and providing coverage to Rhode Island's resident policyholders becomes the responsibility of the guaranty association.
In the event that a member insurer is found to be insolvent and is ordered to be liquidated by a court, the Guaranty Association Act enables the guaranty association to provide protection (up to the limits spelled out in the Act) to Rhode Island residents who are holders of life and health insurance policies and individual annuities with the insolvent insurer.
Specifically, when a member insurer is found to be insolvent and is ordered liquidated, a special deputy receiver takes over the insurer under court supervision and processes the assets and liabilities through liquidation. The task of servicing the insurance company's policies and providing coverage to Rhode Island's resident policyholders becomes the responsibility of the guaranty association.
Services
In most cases, a guaranty association 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 Rhode Island law and policy language at the time the guaranty association is activated to provide protection.
In light of changes in the law and the dramatic variations in policy language, the association cannot make statements regarding coverage of a specific policy unless it is a policy with a company for which the association has been activated to provide protection.
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 Rhode Island law and policy language at the time the guaranty association is activated to provide protection.
In light of changes in the law and the dramatic variations in policy language, the association cannot make statements regarding coverage of a specific policy unless it is a policy with a company for which the association has been activated to provide protection.
Please note that some documents may be in PDF format, and you will need Adobe Acrobat Reader to view them.
The Bulletin discusses the requirement that member insurers deliver a "summary document" with all policies.
Rhode Island Life and Health Insurance Guaranty Association "summary document" approved by the Commissioner.
The Bulletin discusses the requirement that member insurers deliver a "summary document" with all policies.
Rhode Island Life and Health Insurance Guaranty Association "summary document" approved by the Commissioner.
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