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Michigan Life & Health Insurance Guaranty Association
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1640 Haslett Road, Suite 160 / Haslett, MI 48840-8683 |
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Frequently Asked Questions  |
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What happens when my insurance company goes out of business?
Generally, individuals will be protected by MLHIGA if they reside in Michigan and own a life, health or annuity contract issued by an insurer licensed in Michigan or if they are insured under a group, life or health insurance contract issued by an insurer licensed in Michigan. For owners of unallocated annuity contracts, coverage will be provided if the contract is issued in connection to certain employee benefit plans whose sponsor has its principal place of business in Michigan or if the owner is a resident of Michigan and the contract was issued in connection with a government lottery. For payees, or beneficiaries of deceased payees, of structured settlement annuities, coverage will be provided if the payee is a resident of Michigan. In limited cases, certain non-residents might also receive coverage.
You may find out if your insurance company is licensed in Michigan by contacting the Office of Financial and Insurance Services at P.O. Box 30220, Lansing, Michigan 48909-7720, telephone number 517.373.0220. Although licensed in Michigan, policies issued by the following entities are not covered by MLHIGA: a nonprofit health care corporation (e.g. Blue Cross/Blue Shield), a health maintenance organization, a fraternal benefit society, a nonprofit dental care corporation (e.g. Delta Dental), a mandatory state pooling plan, a mutual assessment company or similar plan in which the policyholder is subject to future assessments, an insurance exchange, or an organization limited to the issuance of charitable gift annuities.
MLHIGA will not provide duplicate coverage to any individual that is also covered by the laws of another state or another state’s guaranty association.
Protection can be provided in one of several different ways. For example, MLHIGA may provide coverage directly or a financially sound insurer may take over the troubled company's assets and policies and assume responsibilities for continuing coverage and paying covered claims. MLHIGA may also work with other state guaranty associations to develop an overall plan to provide protection for the failed insurer's policyholders. In any case, delays could be necessary to sort out the affairs of the financially troubled insurer. |
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| 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. |
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