The Connecticut Life and Health Insurance Guaranty Association is a statutory entity created in 1972 when the Connecticut legislature enacted the Connecticut Life and Health Insurance Guaranty Association Act (P.A. 280). The guaranty association is composed of all insurers licensed to sell life insurance, accident and health insurance, and individual annuities in the state of Connecticut. In addition, effective July 1, 2018, healthcare centers authorized to issue any kind of insurance in Connecticut or conduct any healthcare business became members of the Association. In the event that a member insurer is found to be insolvent and is ordered to be liquidated by a court, the Guaranty Association Act enables the guaranty association to provide protection (up to the limits spelled out in the Act) to Connecticut residents who are holders of life and health insurance policies; individual annuities; and, effective July 1, 2018, healthcare center subscriber contracts and certificates with the insolvent insurer.
Specifically, when a member insurer is found to be insolvent and is ordered liquidated, the Insurance Commissioner for the state where the insurer is domiciled, acting as liquidator, takes over the insurer under court supervision and processes the assets and liabilities through liquidation. The task of servicing the insurance company's policies, subscriber contracts, or certificates and providing coverage to Connecticut residents who are eligible for guaranty association coverage becomes the responsibility of the guaranty association. The protection provided by the guaranty association is based on Connecticut law and the language of the insolvent company's policies at the time of insolvency.
We will make every effort to ensure that the information provided here is in accordance with the most current law enacted by the Connecticut legislature. However, if there should be any inconsistency between the Guaranty Association Act or any other law or regulation and the information on this Web site, the relevant law will govern. In light of potential changes in law and the dramatic variations in policy language, the association cannot make statements regarding coverage of a specific policy unless it is a policy with a company for which the association has been activated to provide protection. Finally, this Web site is for general information purposes, does not provide a complete summary of the Act, and should not be relied upon as legal advice.
Again, we hope the information provided in this Web site is useful. Be sure to read the Frequently Asked Questions section of the site for more information, and please refer to the Contact Us section if you have any questions for the guaranty association.