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More » Ethics & ComplianceCIGA's Ethics and Compliance Policy provides a confidential, non-retaliatory, and anonymous hotline for the good faith reporting of concerns about possible violations of law, professional and ethical standards, and CIGA policy when normal channels of communication have proven ineffective ... More » FinanceThe California Insurance Guarantee Association (also known as "CIGA") has three separate funds organized by line of business that cover (1) workers' compensation claims, (2) homeowners and automobile claims (including personal injury), and (3) all other claims (e.g., products liability and commercial ... Bulletin No. 96-2 updates requirements for the California Life and Health Insurance Guarantee Association ("CLHIGA") Summary Document and Disclaimer and Notice of Non-Coverage to include reference to contracts issued pursuant to CIC Section 10507.5(a). (See Bulletin No. 95-10.) The attached Summary Document and Disclaimer (Exhibit A) describes the general purpose and current limitations of the California Life and Health Insurance Guarantee Association Act. It has been adopted by the Guarantee Association and approved by the Insurance Commissioner as prescribed by CIC Section 1067.17(b) and (c). Prior to or at the time of delivery of policies or contracts, insurers and agents must deliver the Summary Document and Disclaimer to insureds. In addition, the Document should be available upon request to any existing policyholder. The attached Notice of Non-Coverage (Exhibit B) must be provided immediately to policyholders as required by California law. Prior to or at the time of delivery of a policy excluded from Guarantee Fund coverage, the insurer or agent must give the policyholder or contract holder clear notice that the policy or contract is not covered by the California life and Health Insurance Guarantee Association (CIC Section 1067.17(d)). In addition, prior to offering an unallocated annuity contract to an employer, or the participation by an employee, the insurer or agent must disclose to the employer and employee in conspicuous writing that the contract is not covered by the Guarantee Association (CIC Section 1067.02(e)). Determination as to whether products are covered under the Guarantee Association or whether annuity contracts are allocated or unallocated, must be initially made by insurers based on their knowledge of specific contracts offered. Pursuant to CIC Section 1067.17(a), the existence of the California Life and Health Insurance Guarantee Association may not be used in any manner to induce the purchase of insurance covered by the Guarantee Association Act. Inquiries as to this Bulletin may be directed to: Note: These addresses were updated on this page in May, 2002 Consumer Service Division or Executive Director Back to Top Exhibit A California Life and Health Insurance Guarantee Association Act Summary Document and Disclaimer Residents of California who purchase life and health insurance and annuities should know that the insurance companies licensed in this state to write these types of insurance are members of the California Life and Health Insurance Guarantee Association ("CLHIGA"). The purpose of this Association is to assure that policyholders will be protected, within limits, in the unlikely event that a member insurer becomes financially unable to meet its obligations. If this should happen, the Guarantee Association will assess its other member insurance companies for the money to pay the claims of insured persons who live in this state and, in some cases, to keep coverage in force. The valuable extra protection provided through the Association is not unlimited, as noted in the box below, and is not a substitute for consumers' care in selecting insurers. [Note: For purposes of displaying this document on the internet certain text, that was displayed in a box in the original bulletin, appears below in small print.] The California Life and Health Insurance Guarantee Association may not provide coverage for this policy. If coverage is provided, it may be subject to substantial limitations or exclusions, and require continued residency in California. You should not rely on coverage by the Association in selecting an insurance company or in selecting an insurance policy. Coverage is NOT provided for your policy or any portion of it that is not guaranteed by the insurer or for which you have assumed the risk, such as a variable contract sold by prospectus. Insurance companies or their agents are required by law to give or send you this notice. However, insurance companies and their agents are prohibited by law from using the existence of the Guarantee Association to induce you to purchase any kind of insurance policy. Policyholders with additional questions should first contact their insurer or agent or may then contact Note: These addresses were updated on this Internet page in May, 2002 California Life and Health Insurance or Consumer Service Division Back to Top Below is a brief summary of this law's coverages, exclusions and limits. This summary does not cover all provisions of the law; nor does it in any way change anyone's rights or obligations under the Act or the rights or obligations of the Association. CoverageGenerally, individuals will be protected by the California Life and Health Insurance Guarantee Association if they live in this state and hold a life or health insurance contract, or an annuity, or if they are insured under a group insurance contract, issued by a member insurer. The beneficiaries, payees or assignees of insured persons are protected as well, even if they live in another state. Exclusions from CoverageHowever, persons holding such policies are not protected by this Guarantee Association if:
The Guarantee Association also does not provide coverage for:
Limits on Amounts of CoverageThe Act limits the Association to pay benefits as follows: Live and Annuity Benefits* 80% of what the life insurance company would owe under a life policy or annuity contract up to * $100,000 in cash surrender values, * $100,000 in present value of annuities, or * $250,000 in life insurance death benefits. * A maximum of $250,000 for any one insured life no matter how many policies and contracts there were with the same company, even if the policies provided different types of coverages. HEALTH BENEFITS * A maximum of $200,000 of the contractual obligations that the health insurance company would owe were it not insolvent. The maximum may increase or decrease annually based upon changes in the health care cost component of the consumer price index. Premium SurchargeMember insurers are required to recoup assessments paid to the Association by way of a surcharge on premiums charged for health insurance policies to which the Act applies. Back to Top Notice of Non-Coverage California Life and Health Insurance Guarantee Association Act This policy is NOT covered by The California Life and Health Insurance Guarantee Association Exclusions from CoverageThe following are not covered by the California Life and Health Insurance Guarantee Association:
A determination as to whether an insurance contract is covered under the Guarantee Association or whether an annuity Also, you are not protected by this Association if:
Insurance companies or their agents are required by law to give or send you this notice. However, insurance companies and their agents are prohibited by law from using the existence of the Guarantee Association to induce you to purchase any kind of insurance policy. If you have questions concerning this Notice, you may contact Note: These addresses were updated on this Internet page in May, 2002: California Life and Health Insurance Guarantee AssociationP.O. Box 16860 Beverly Hills, CA 90209 (323) 782-0182 or Consumer Service Division (800) 927-4357 or (213) 897-8921 Questions as to specific policies or annuities should be directed to the insurance company offering the product. What is the purpose of the California life and health Guarantee Association quizlet?The purpose of the Insurance Guaranty Association is to protect policyholders when an insurance company becomes insolvent. Benefits paid to claimants and policyholders are subject to limits.
What is the purpose of the life and health insurance Guaranty Association?Insurance guaranty associations provide protection to insurance policyholders and beneficiaries of policies issued by an insurance company that has become insolvent and is no longer able to meet its obligations. All states, the District of Columbia, and Puerto Rico have insurance guaranty associations.
What parties does the California life and health Guarantee Association protect?Generally, individuals will be protected by the California Life and Health Insurance Guarantee Association if they live in this state and hold a life or health insurance contract, or an annuity, or if they are insured under a group insurance contract, issued by a member insurer.
Who is protected by the life and health Guaranty Association?What is a life and health insurance guaranty association? Life and health insurance guaranty associations were created to protect state residents who are policyholders and beneficiaries of policies issued by a life or health insurance company that has gone out of business.
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