|
|
|
|
|
|
|
New Jersey Life & Health Insurance Guaranty Association
|
|
11 Wharf Avenue, Suite One / Red Bank, NJ 07701 |
|
|
|
|
|
|
|
|
Frequently Asked Questions  |
| |
For example, if I own three annuities worth $100,000 each and my insurance company fails, how much is protected?
As discussed above, it would depend upon the type(s) of annuities you owned. The total protection per owner, per member company, is $500,000 for all annuity contracts, but only $100,000 may represent cash surrender value i.e. be in the form of deferred annuities. As a result, if an individual owned three $100,000 annuities with the same insolvent insurance company, and all three were deferred annuities, the individual would have total guaranty association coverage of only $100,000. The value in excess of this statutory coverage limit would be eligible for submission as a creditor claim in the receivership, and the annuity holder may receive distributions as the company's assets are liquidated by the receiver. |
| |
| NOTE: This information is not intended as legal advice, and no liability is assumed in connection with its use. The applicable state guaranty association statute is the controlling authority, regardless of any information presented on this site. Users should seek advice from a qualified attorney and should not rely on this compilation when considering any questions relating to guaranty association coverage. |
|
| |
| [ Back to FAQ list ] |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
