First off, this Association is only for Californians. Those who live in other states are certainly free to continue reading and wonder if their own state has a similar association. If you don’t, maybe your local Congress members could look into setting up a similar Association based on the California model. Until your state gets one, the California Life And Health Insurance Guarantee Association is yet another reason to hate California.
What Is It, Then?
After that introduction, this had better be good. The California Life And Health Insurance Guarantee Association protects all Californians' insurance policies even if the insurance company the use goes bankrupt. In this age of a slowing economy and an inevitable recession, it's good to know that your life and you health insurance are two less things to worry about.
The California Life And Health Insurance Guarantee Association started in 1991 under Governor Pete Wilson, when a bill of the same name as the Association passed California law. The people in this Association check all of the policies of the defunct insurance company and make sure every policy holder gets what they paid for. This also covers any Individual Retirement Accounts (IRAs).
How Does It Work?
When an insurance company is dissolved (called "insolvent"), all policy holders will be notified by California's Department of Insurance via mail. Only a court can declare an insurance company dissolved. The California Life And Health Insurance Guarantee Association will work to protect you as quickly as they can. The length of time they take will vary from case to case.
In case you are wondering where the money comes from, it is from all insurance companies that are allowed to do business in California. Those insurance companies provide the full funding for the California Life And Health Insurance Guarantee Association, not your tax dollars.
The Association does not have the power to rewrite any existing laws or policies. They can't give out legal advice, either. They try to determine what your policy covers (and what it doesn't) and get you what they can. You are guaranteed coverage of up to (but not exceeding) $100,000 for your life insurance. If your original life insurance policy was for over $100,000, too bad.
The Association provides a website with free information to all Californians. Included on this website is a list of all insurance companies that have been declared insolvent since 1991. They currently list thirty-two insurance companies.
What Is It, Then?
After that introduction, this had better be good. The California Life And Health Insurance Guarantee Association protects all Californians' insurance policies even if the insurance company the use goes bankrupt. In this age of a slowing economy and an inevitable recession, it's good to know that your life and you health insurance are two less things to worry about.
The California Life And Health Insurance Guarantee Association started in 1991 under Governor Pete Wilson, when a bill of the same name as the Association passed California law. The people in this Association check all of the policies of the defunct insurance company and make sure every policy holder gets what they paid for. This also covers any Individual Retirement Accounts (IRAs).
How Does It Work?
When an insurance company is dissolved (called "insolvent"), all policy holders will be notified by California's Department of Insurance via mail. Only a court can declare an insurance company dissolved. The California Life And Health Insurance Guarantee Association will work to protect you as quickly as they can. The length of time they take will vary from case to case.
In case you are wondering where the money comes from, it is from all insurance companies that are allowed to do business in California. Those insurance companies provide the full funding for the California Life And Health Insurance Guarantee Association, not your tax dollars.
The Association does not have the power to rewrite any existing laws or policies. They can't give out legal advice, either. They try to determine what your policy covers (and what it doesn't) and get you what they can. You are guaranteed coverage of up to (but not exceeding) $100,000 for your life insurance. If your original life insurance policy was for over $100,000, too bad.
The Association provides a website with free information to all Californians. Included on this website is a list of all insurance companies that have been declared insolvent since 1991. They currently list thirty-two insurance companies.
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