TITLE 50: INSURANCE
CHAPTER I: DEPARTMENT OF INSURANCE
SUBCHAPTER ll: LIFE AND HEALTH INSURANCE GUARANTY ASSOCIATION
PART 3401 SUMMARY DOCUMENT AND DISCLAIMER
SECTION 3401.ILLUSTRATION A SUMMARY DOCUMENT AND DISCLAIMER
Section 3401.ILLUSTRATION A Summary Document and Disclaimer
PROTECTION PROVIDED BY
ILLINOIS LIFE AND HEALTH INSURANCE GUARANTY ASSOCIATION
This notice provides a brief summary description of the Illinois Life and Health Insurance Guaranty Association (the Association) and the protection it provides for policyholders. This safety net was created under Illinois law that determines who and what is covered and the amounts of coverage.
The Association was established to provide protection in the unlikely event that your member life, annuity or health insurance company becomes financially unable to meet its obligations and is placed into Receivership by the Insurance Department of the state in which the company is domiciled. If this should happen, the Association will typically arrange to continue coverage and pay claims, in accordance with Illinois law, with funding from assessments paid by other insurance companies.
The basic protections provided by the Association per insolvency are:
• Life Insurance
◦ $300,000 in death benefits
◦ $100,000 in cash surrender or withdrawal values
• Health Insurance
◦ $500,000 in hospital, medical and surgical insurance benefits*
◦ $300,000 in disability insurance benefits
◦ $300,000 in long-term care insurance benefits
◦ $100,000 in other types of health insurance benefits
◦ $250,000 in withdrawal and cash values
* The maximum amount of protection for each individual, regardless of the number of policies or contracts, is $300,000, except special rules apply to hospital, medical and surgical insurance benefits for which the maximum amount of protection is $500,000.
Note: Certain policies and contracts may not be covered or fully covered. For example, coverage does not extend to any portion of a policy or contract that the insurer does not guarantee, such as certain investment additions to the account value of a variable life insurance policy or a variable annuity contract. There are also residency requirements and other limitations under Illinois law.
To learn more about these protections, as well as protections relating to group contracts or retirement plans, please visit the Association's website at www.ilhiga.org or contact:
Illinois Life and Health Insurance Guaranty Association
1520 Kensington Road, Suite 112
Oak Brook, Illinois 60523-2140
Illinois Department of Insurance
320 West Washington Street
Springfield, Illinois 62767
Insurance companies and agents are not allowed by Illinois law to use the existence of the Association or its coverage to encourage you to purchase any form of insurance. When selecting an insurance company, you should not rely on Association coverage. If there is any inconsistency between this notice and Illinois law, then Illinois law will control.
(Source: Amended at 38 Ill. Reg. 7926, effective March 27, 2014)