Nebraska Life & Health Insurance Guaranty Assn

Protecting Nebraska's Policyholders

The Nebraska Life & Health Insurance Guaranty Association (the Guaranty Association) is dedicated to safeguarding the financial well-being of Nebraska residents who hold life insurance, health insurance, and annuity contracts. Established in 1975 by the Nebraska Legislature, our mission is to provide a safety net for policyholders in the unfortunate event that an insurance company licensed in Nebraska becomes insolvent. In essence, we act as a protector, ensuring that policyholders do not lose their hard-earned coverage due to unforeseen circumstances.

Membership and Governance

As a non-profit association, the Guaranty Association comprises nearly 1,100 member insurers who sell life insurance, health insurance, and annuities in Nebraska. This extensive network ensures that a significant portion of the insurance market is represented, contributing to a robust system of protection for policyholders. The Guaranty Association operates under the direct supervision of the Director of the Nebraska Department of Insurance, and a Board of Directors elected by member insurers guides its operations. This structure ensures both accountability and a strong connection to the insurance industry.

Financial Security and Coverage Limitations

Importantly, while the Guaranty Association is created by state law, it does not receive financial support from the state of Nebraska. Instead, its financial stability relies on assessments levied on member insurers, ensuring that the resources needed to fulfill its obligations are available.

However, the Guaranty Association's coverage is indeed limited. The acts specifically outlines the scope of protection offered, with certain maximum payout limits applicable to various types of insurance products. For instance, the maximum payout for life insurance death benefits is $300,000, while the coverage for basic hospital medical or surgical insurance benefits is capped at $500,000. Similar limits apply to annuity benefits, structured settlement annuities, long-term care insurance, and other types of health insurance. Additionally, the Guaranty Association's total liability for any one individual cannot exceed $300,000 for life and annuity coverage or $500,000 for health insurance and life or annuity coverage.

Consulting the Act for Specific Details

Given the intricate nature of insurance regulations and the varying needs of policyholders, it is essential to rely on accurate and comprehensive information. While the Guaranty Association strives to provide general guidance on its website, it is strongly recommended that individuals consult the complete Nebraska Life and Health Insurance Guaranty Association Act to gain a thorough understanding of its provisions and limitations.

Remember, the Nebraska Life & Health Insurance Guaranty Association stands ready to act as a crucial safeguard for your financial security. Should you encounter any issues or questions related to your insurance coverage, please do not hesitate to seek clarification from the Guaranty Association or a qualified legal professional.