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DEPARTMENT OF INSURANCE

October 7, 2013
Bulletin 200
Indiana Life and Health Insurance Guaranty Association Disclaimer


IC 27-8-8-18 requires the Indiana Life and Health Insurance Guaranty Association (ILHIGA) to prepare a summary document for the Commissioner's approval. The summary document must describe the general purposes and current limitations of IC 27-8-8 and contain specific information as stated in IC 27-8-8-18(c). The ILHIGA has made the required filing and the summary document has been approved by the Commissioner. The text of the summary document is attached to this bulletin as an exhibit. This bulletin replaces Bulletin 145, which is hereby withdrawn as of December 6, 2013.
Effective December 6, 2013, the ILHIGA member insurers may not deliver a policy or contract to a policy or contract owner unless the summary document is delivered to the policy or contract owner at the time of delivery of the policy or contract. The summary document must also be available upon request by a policy or contract owner. The distribution, delivery, or contents or interpretation of the summary document does not guarantee that the policy or contract or the owner of the policy or contract is covered in the event of the impairment or insolvency of a member insurer. The summary document must be revised by the ILHIGA in the event an amendment to IC 27-8-8 requires. Failure to receive the summary document does not give a policy owner, a contract owner, a certificate holder, or an insured, greater rights than the rights specified in IC 27-8-8. ILHIGA member insurers may deliver the attached summary document before December 2, 2013.

INDIANA DEPARTMENT OF INSURANCE
_____________________________________
Stephen W. Robertson
Insurance Commissioner

NOTICE OF PROTECTION PROVIDED BY THE
INDIANA LIFE AND HEALTH INSURANCE GUARANTY ASSOCIATION

This notice provides a brief summary of the Indiana Life and Health Insurance Guaranty Association ("ILHIGA") and the protection it provides for policyholders. ILHIGA was established to provide protection to policyholders in the unlikely event that your life, annuity or health insurance company becomes financially unable to meet its obligations. If this should happen, ILHIGA will typically arrange to continue coverage and pay claims, in accordance with Indiana law, with funding from assessments paid by other insurance companies.

Basic Protections Currently Provided by ILHIGA
Generally, an individual is covered by ILHIGA if the insurer was a member of ILHIGA and the individual lives in Indiana at the time the insurer is ordered into liquidation with a finding of insolvency. The coverage limits below apply only to for companies placed in rehabilitation or liquidation on or after January 1, 2013.

Life Insurance
• $300,000 in death benefits
• $100,000 in cash surrender or withdrawal values

Health Insurance
• $500,000 in basic hospital, medical and surgical or major medical insurance benefits
• $300,000 in disability and long-term care insurance
• $100,000 in other types of health insurance

Annuities
• $250,000 in present value of annuity benefits (including cash surrender or withdrawal values)
• $5,000,000 for covered unallocated annuities

The maximum amount of protection for each individual, regardless of the number of policies or contracts, is $300,000. Special rules may apply with regard to basic hospital, medical and surgical or major medical insurance benefits.

The protections listed above apply only to the extent that benefits are payable under covered policy(s). In no event will the ILHIGA provide benefits greater than those given in the life, annuity, or health insurance policy or contract. The statutory limits on ILHIGA coverage have changed over the years and coverage in prior years may not be the same as that set forth in this notice.

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 variable annuity contract.

To learn more about the protections provided by ILHIGA, please visit the ILHIGA website at www.inlifega.org or contact:
Indiana Life & Health Insurance  Indiana Department of Insurance 
Guaranty Association  311 West Washington Street, Suite 103 
8777 Purdue Road, Suite 360  Indianapolis, IN 46204 
Indianapolis, IN 46268  (317) 232-2385 
(317) 636-8204   

The policy or contract that this notice accompanies might not be fully covered by ILHIGA and even if coverage is currently provided, coverage is (a) subject to substantial limitations and exclusions (some of which are described above), (b) generally conditioned on continued residence in Indiana, and (c) subject to possible change as a result of future amendments to Indiana law and court decisions.

Complaints to allege a violation of any provision of the Indiana Life and Health Insurance Guaranty Association Act must be filed with the Indiana Department of Insurance, 311 W. Washington Street, Suite 103, Indianapolis, IN 46204; (telephone) 317-232-2385.

Insurance companies and agents are not allowed by Indiana law to use the existence of ILHIGA or its coverage to encourage you to purchase any form of insurance. (IC 27-8-8-18(a)). When selecting an insurance company, you should not rely on ILHIGA coverage. If there is any inconsistency between this notice and Indiana law, Indiana law will control.

Questions regarding the financial condition of a company or your life, health insurance policy or annuity should be directed to your insurance company or agent.

Posted: 10/16/2013 by Legislative Services Agency

DIN: 20131016-IR-760130456NRA
Composed: Apr 16,2014 12:35:20AM EDT
A PDF version of this document.