Rev. 10.21.2016|Page 1
NOTICE OF PROTECTION PROVIDED BY
CALIFORNIALIFE
AND
HEALTH INSURANCE GUARANTEE ASSOCIATION
This notice provides a brief summary regarding the protections provided to policyholders by the
California Life and Health Insurance Guarantee Association ("the Association"). The purpose of the
Association is to assure that policyholders will be protected, within certain limits, in the unlikely event
that a member insurer of the Association becomes financially unable to meet its obligations. Insurance
companies l icensed in California to sell life insurance, health insurance, annuities and structured
settlement annuities are members of the Association. The protection provided by the Association is not
unlimited and is not a substitute for consumers' care in selecting insurers. This protection was created
under California l aw, which determines who and what is covered and the amounts of coverage.
Below is a brief summary of the coverages,exclusions and limits provided by the Association. This
summary does not cover all provisions of the law; nor does it in any way change anyone's rights or
obligations or the rights or obligations of the Association.
COVERAGE
Persons Covered
Generally, an individual is covered by the Association if the insurer was a member of the Association
and
the individual lives in California at the time the insurer is determined by a court to be insolvent.
Coverage is also provided to policy beneficiaries, payees or assignees, whether or not they live in
California.
•
Amounts of Coverage
The basic coverage protections provided by the Association are as follows.
•
Life Insurance, Annuities and Structured Settlement Annuities
For life insurance policies, annuities and structured settlement annuities, the Association will
provide the following:
•
Life Insurance
80% of death benefits but not to exceed $300,000
80% of cash surrender or withdrawal values but not to exceed $100,000
•
Annu i ties and Structured Settlement Annuities
80% of the present value of annuity benefits, including net cash withdrawal and
net cash sun-ender values but not to exceed $250,000
The maximum amount of protection provided by the Association to an individual, for all life
insurance, annuities and structured settlement annuities is $300,000, regardless of the number of
policies or contracts covering the individual.
•
Health Insurance
The maximum amount of protection provided by the Association to an individual, as of July 1, 20 16, is
$546,741. This amount will increase or decrease based upon changes in the health care
cost component of the consumer price index to the date on which an insurer becomes an insolvent insurer.
Changes to this amount will be posted on the Association
's
website www.califega.org.
932487 08/19
Rev. 10.21.2016|Page 2
COVERAGE LIMITATIONS AND EXCLUSIONS FROM COVERAGE
The Association may not provide coverage for this policy. Coverage by the Association generally
requires residency in California. You should not rely on coverage by the Association in selecting an
insurance company or in selecting an insurance policy.
The following policies and persons are among those that are excluded from Association coverage:
•
A policy or contract issued by an insurer that was not authorized to do business in California
when it issued the policy or contract
•
A policy issued by a health care service plan
(HMO),
a hospital or medical service
organizat ion, a charitable organization , a fraternal benefit society, a mandatory state pooling
plan, a mutual assessment company, an insurance exchange, or
a
grants and annuities society
•
If the person is provided coverage by the guaranty association of another state
•
Unallocated annuity contracts; that is, contracts which are not issued to and owned by an
individual and which do not guaranty annuity benefits to an individual
•
Employer and association plans, to the extent they are self-funded or uninsured
•
A policy or contract providing any health care benefits under Medicare Part C or Part D
•
An annuity issued by an organization that is only licensed to issue charitable gift annuities
•
Any policy or portion of a policy which is not guaranteed by the insurer or for which the
individual has assumed the risk, such as certain investment elements of a variable life insurance
pol icy or a variable annuity contract
•
Any policy of reinsurance unless an assumption ce1tificate was issued
•
Interest rate yields (including implied yields) that exceed limits that are specified
in
Insurance
Code Section 1067.02(b)(2)(C)
NOTICES
Insurance companies or their agents are required by law to give or send you this notice. Policyholders
with additional questions should first contact their insurer or agent. To learn more about coverages
provided by the Association, please visit the Association's website at www.califega.org, or contact either
of the fol lowing:
California Life and Health Insurance
Guarantee Association
P.O. Box 16860
Beverly Hills, CA 90209-3319
(323) 782-0182
California Department of Insurance
Consumer Communications Bureau
300 South Spring Street
Los Angeles, CA 90013
(800) 927- 4357
Insurance companies and agents are not allowed by California law to use the existence of the
Association or its coverage to solicit, induce or encourage you to purchase any form of insurance.
When selecting an insurance company, you should not rely on Association coverage. If there is any
inconsistency between this notice and California law, then California law will control.
932487 08/19
