SUMMARY:
The 1996 state law that provides for this safety-net coverage is called the New Hampshire Life and Health Insurance
Guaranty Association Act. Below is a brief summary of this law's coverage, exclusions and limits, This summary
does not cover all provisions of the law and it does not in any way change one's rights or obligations under the Act or
the rights or obligations of the Association.
COVERAGE:
Generally, individuals will be protected by the New Hampshire Life and Health Insurance Guaranty Association if
they live in this state and hold a life or health insurance policy or an annuity contract, or if they are insured under a
group insurance contract, issued by a member insurer. The beneficiaries, assignees or payees of insured persons are
protected as well, even if they live in another state.
Coverage provided under this Act may be different from coverage provided prior to 1996, as coverage is determined
by the governing Act in effect on the date that the Association becomes obligated.
EXCLUSIONS FROM COVERAGE:
Persons holding such policies or contracts are NOT protected by this Association if:
they are not residents of the state of New Hampshire, except under certain very specific circumstances;
they are eligible for protection under the laws of another state; or
e their policy was issued by a nonprofit hospital or medical service organization, an HMO, a fraternal benefit
society, a mandatory state pooling plan, a mutual assessment company or any entity that operates on an
assessment basis, an insurance exchange, or any entity similar to any of the above.
The Association also does NOT provide coverage for:
® any policy or portion of a policy or contract not guaranteed by the insurer or under which the risk is borne by the
policy holder or contract holder;
e any policy or contract of reinsurance, unless assumption certificates have been issued;
e interest rate guarantees that exceed certain statutory limitations;
e any plan or program of an employer, association, or similar entity to provide life, health, or annuity benefits to its
employees or members to the extent that the plan or program is self-funded or uninsured, including, but not
limited to, benefits payable by an employer, association, or similar entity;
dividends, experience rating credits, or fees for services in connection with an insurance policy;
any policy or contract issued in this state by an insurer at a time when it was not licensed or authorized to do
business in New Hampshire;
e any unallocated annuity contract issued to an employee benefit plan protected under the federal Pension Benefit
Guaranty Corporation;
e any portion of any unallocated annuity contract which is not issued to or in connection with a specific employee,
union, or association of natural persons benefit plan or a government lottery; or
¢ any portion of a policy or contract to the extent that the required assessments are preempted by federal or state
law.
LIMITS ON AMOUNT OF COVERAGE
The Act also limits the amount the Association is obligated to pay. The Association cannot pay more than what the
insurance company would owe under a policy or contract.
With respect to any one life, the Association will pay a maximum of $300,000 - no matter how many policies and
contracts there were with the same company, even if they provided different types of coverages. Within this overall
$300,000 limit, the Association will not pay more than $100,000 in cash surrender values, $100,000 in health
Form PA-8857-1 New Hampshire Printed in U.S.A.
