Section 3401.ILLUSTRATION A Summary
Document and Disclaimer
NOTICE
OF
PROTECTION
PROVIDED BY
ILLINOIS
LIFE AND HEALTH INSURANCE GUARANTY ASSOCIATION
This notice provides a brief
summary description of the Illinois Life and Health Insurance Guaranty
Association ("the Association") and the protection it provides for
policyholders. This safety net was created under Illinois law, which
determines who and what is covered and the amounts of coverage.
The Association was established
to provide protection in the unlikely event that your member life, annuity,
health maintenance organization or health insurance company becomes financially
unable to meet its obligations and is placed into Receivership by the Insurance
Department of the state in which the company is domiciled. If this should
happen, the Association will typically arrange to continue coverage, pay
claims, or otherwise provide protection in accordance with Illinois law, with
funding from assessments paid by other insurance companies and health
maintenance organizations.
The basic protections provided
by the Association per insured in each insolvency are:
• Life
Insurance
◦ $300,000
for death benefits
◦ $100,000
for cash surrender or withdrawal values
• Health
Insurance
◦ $500,000 for health benefit plans*
◦ $300,000
for disability insurance benefits
◦ $300,000
for long-term care insurance benefits
◦ $100,000
for other types of health insurance benefits
• Annuities
◦ $250,000
for withdrawal and cash values
* The maximum
amount of protection for each individual, regardless of the number of policies
or contracts, is $300,000, except special rules apply with regard to health
benefit plan benefits for which the maximum amount of protection is $500,000.
Note: Certain policies and contracts may not be covered or fully
covered. For example, coverage does not extend to any portion of a policy
or contract that the insurer does not guarantee, such as certain investment
additions to the account value of a variable life insurance policy or a
variable annuity contract. There are also residency requirements and other
limitations under Illinois law.
To learn more about these
protections, as well as protections relating to group contracts or retirement
plans, please visit the Association's website at www.ilhiga.org or contact:
Illinois Life
and Health Insurance Guaranty Association
901
Warrenville Road, Suite 400
Lisle,
Illinois 60532-4324
Illinois
Department of Insurance
4th
Floor
320 West
Washington Street
Springfield,
Illinois 62767
Insurance companies, health
maintenance organizations and agents are not allowed by Illinois law to use the
existence of the Association or its coverage to encourage you to purchase any
form of insurance. When selecting an insurance company or health maintenance
organization, you should not rely on Association coverage. If there is any
inconsistency between this notice and Illinois law, then Illinois law will
control.
The Association is not an
insurance company or health maintenance organization. If you wish to contact
your insurance company or health maintenance organization, please use the phone
number found in your policy or contact the Illinois Department of Insurance at DOI.InfoDesk@illinois.gov.
(Source: Amended at 43 Ill.
Reg. 3290, effective February 25, 2019)
