Nebraska Life & Health Insurance Guaranty Assn

Welcome to the Nebraska Life and Health Insurance Guaranty Association ("Guaranty Association") website. This site has been created to provide information regarding the history and purpose of the Guaranty Association. The information provided in this website is general in nature and may not address a specific policy or issue. The intent of this website is to provide, in non-technical language, information about the Guaranty Association. The terms and coverage of insurance products are very diverse and, as a result, it is difficult to make general statements about Guaranty Association coverage without reviewing a specific contract. The generalized information provided by this website should not be relied upon as legal advice. If you have specific legal questions regarding these issues, please consult a qualified legal counselor. In addition, please refer to the Nebraska Life and Health Insurance Guaranty Association Act ("Guaranty Association Act"), Neb. Rev. Stat. §44-2701 et seq., for specific information regarding the coverage of the Guaranty Association.

The Guaranty Association Act

The Guaranty Association Act was first enacted by the Nebraska Legislature in 1975. The purpose of the Guaranty Association Act is to create the Guaranty Association to protect Nebraska residents who own life insurance, health insurance or annuity contracts. Under the Guaranty Association Act, the Guaranty Association provides limited protection to Nebraska residents who are holders of covered life and health insurance policies and individual annuities issued by Guaranty Association member insurers in the event the member insurer which issued the insurance policy or individual annuity becomes insolvent. The Guaranty Association is a non-profit, unincorporated association of all insurers licensed to sell life insurance, health insurance and annuities in the state of Nebraska. Currently, there are approximately 1,100 member insurers of the Guaranty Association. The Guaranty Association is governed by a Board of Directors elected by member insurers and under the direct supervision of the Director of the Nebraska Department of Insurance. Although the Guaranty Association is created by Nebraska state law, it is not financially supported by the State of Nebraska.

Coverage and Limits

When coverage is available pursuant to the terms of the Guaranty Association Act, such coverage is limited by both the express terms of the covered policy or contract and the limitations provided by the Guaranty Association Act. In no event will Guaranty Association liability exceed, with respect to any one life, $300,000 in life insurance death benefits; $100,000 in life insurance cash surrender/withdrawal value; $250,000 in present value annuity benefits; $250,000 in structured settlement annuities; or $500,000 for basic hospital, medical, or surgical insurance or major medical insurance; $300,000 in long term care or disability insurance; and $100,000 in other health insurance as defined by statute. In addition, the Guaranty Association's aggregate liability with respect to any one life cannot exceed $300,000 in benefits with respect to life and annuity coverage, or $500,000 with respect to benefits for health insurance and life or annuity coverage. As mentioned, the Guaranty Association Act is very specific with regard to the benefits provided by the Guaranty Association. For a detailed explanation of these benefits, please review the complete Nebraska Life and Health Insurance Guaranty Association Act. The protection provided by the Guaranty Association is subject to change in the event that the Nebraska Legislature amends the Guaranty Association Act or any other state law. If there should be any inconsistency between the Guaranty Association Act or any other law or regulation and this website, the relevant law will control.