If a consumer buys a New York annuity while living out of state, then moves to New York before the issuer fails, the New York guaranty fund should back the guaranteed contract benefits.
The New York State Insurance Department Office of General Counsel comes to that conclusion in OGC Opinion Number 08-11-03.
A member of the public asked office officials the following question about the Life Insurance Company Guaranty Corp. of New York:
“Would the Guaranty Corporation provide protection if a New York domiciled life insurance company, which issued the inquirer an annuity while he was a resident of another state, were to become insolvent while the inquirer is a resident of New York?”
The guaranty corporation would provide protection, officials write in the opinion.