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. Show
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. NOTICE OF PROTECTION PROVIDED BY MARYLAND LIFE AND HEALTH INSURANCE GUARANTY CORPORATION This notice provides a brief summary of the Maryland Life and Health Insurance Guaranty Corporation (the Corporation) and the protection it provides for policyholders. This safety net was created under Maryland law, which determines who and what is covered and the amounts of coverage. The Corporation is not a department or unit of the State of Maryland and the liabilities or debts of the Life and Health Insurance Guaranty Corporation are no liabilities or debts of the State of Maryland. The Corporation was established to provide protection in the unlikely event that your life, annuity, or health insurance company becomes financially unable to meet its obligations and is taken over by its Insurance Department. If this should happen, the Corporation will typically arrange to continue coverage and pay claims, in accordance with Maryland law, with funding from assessments paid by other insurance companies. The basic protections provided by the Corporation are: • Health Insurance • Annuities NOTE: Certain policies and contracts may not be covered or fully covered. For example, coverage does not extend to any portion(s) of a policy or contract that the insurer does not guarantee, such as certain investment additions to the account value of a variable life insurance policy or a variable annuity contract. There are also various residency requirements and other limitations under Maryland law. Recommended textbook solutions
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Business Math17th EditionMary Hansen 3,734 solutions Intermediate Accounting14th EditionDonald E. Kieso, Jerry J. Weygandt, Terry D. Warfield 1,471 solutions What is the purpose of the life and health insurance guaranty association?Insurance guaranty associations provide protection to insurance policyholders and beneficiaries of policies issued by an insurance company that has become insolvent and is no longer able to meet its obligations. All states, the District of Columbia, and Puerto Rico have insurance guaranty associations.
How is life and health insurance guaranty association funded quizlet?The Life and Insurance Guaranty Association is funded by insurance companies through assessments and will pay claims if an insurance company becomes insolvent.
What does the State Life and health insurance guaranty association guard against quizlet?What does the Guaranty Association guard against? All admitted insurers must be a member of the Insurance Guaranty Association as a condition of their license. The Insurance Guaranty Association is in existence to protect policyowners and beneficiaries against losses caused by the insolvency of an insurance company.
What is the purpose of the Ohio life and health insurance guaranty association?What does the Guaranty Association do? OLHIGA covers claims of people who are insured by a member company which has been or is about to be liquidated. For an insurance company, liquidation is similar to bankruptcy.
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What is the purpose of the life and health insurance Guaranty Association quizlet?
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