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September 17, 2008 at 12:31 PM
The New York State Insurance Department has published a new brochure: “Policyholder Protection – Life Insurance Company Guaranty Corporation Of New York.”
Here are some excerpts from the brochure, which was prepared by the New York department’s Life Insurance Bureau:
Q: What types of insurance policies are protected by the LICGC?
A: The LICGC protects life insurance policies as well as annuity contracts and accident and health insurance policies issued by licensed life insurers, subject to certain limitations. Limited protection is also available for other types of contracts as discussed below.
Q: Are there any limits on the protection afforded by the LICGC?
A: The LICGC will provide up to $500,000 of coverage to a life insurance policyholder/beneficiary, an individual annuity (such as a Single Premium Deferred Annuity) contract holder or an individual accident and health insurance policyholder. In addition, the full benefits of group accident and health insurance policies issued by licensed life insurers are protected for a minimum of six months.
Also, limited coverage is afforded to funding agreements and group annuity contracts….
Q: My insurance company’s home office is in another state, but the company is licensed in New York. Am I protected by the LICGC?
A: You are protected if you were a resident of New York State when you purchased the policy or are a resident at the time your insurance company becomes insolvent. Policies purchased from domestic life insurers prior to August 2, 1985 may have additional protection through the separate Life Insurance Guaranty Corporation, regardless of residency.
Q: I bought my life insurance policy when I lived in New York but now I live in Florida. Am I protected?
A: As long as you were a resident of this State at the time of purchase and your insurer was licensed here, you are protected. You may also have protection in your current state of residence.
