- dividends; - credits given in connection with the administration of a policy by a group contractholder; - employers' plans to the extent they are self-funded (that is, not insured by an insurance company, even if an insurance company administers them); - unallocated annuity contracts (which give rights to group contractholders, not individuals). LIMITS ON AMOUNT OF COVERAGE The act also limits the amount the Guaranty Association is obligated to pay out. The Guaranty Association cannot pay more than what the insurance company would owe under a policy or contract. For any one insured life, the Guaranty Association guarantees payments up to a stated maximum no matter how many policies and contracts there were with the same company, even if they provided different types of coverage. These aggregate limits per life are as follows: - $300,000 for policies and contracts of all types, except as described in the next point - $500,000 for basic hospital, medical and surgical insurance and major medical insurance issued by companies that become insolvent after January 1, 2010. Within these overall limits, the Guaranty Association cannot guarantee payment of benefit greater than the following: - Life insurance death benefits - $300,000 - Life insurance cash surrender value - $100,000 - Present value of annuity benefits for companies insolvent before July 1, 2009 - $100,000 - Present value of annuity benefits for companies insolvent after June 30, 2009 - $250,000 - Health insurance benefits for companies declared insolvent before January 1, 2010 - $100,000 - Health insurance benefits for companies declared insolvent on or after January 1, 2010: - $100,000 for limited benefits and supplemental health coverages - $300,000 for disability and long term care insurance - $500,000 for basic hospital, medical and surgical insurance or major medical insurance NOTE The Tennessee Life and Health Insurance Guaranty 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 Tennessee. You should not rely on coverage by the Tennessee Life and Health Insurance Guaranty 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 for which you have assumed the risk, such as a variable contract sold by prospectus.
GUAR-2 (1/1/2025)
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