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Guaranty Fund Information
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What happens when a company becomes insolvent?
Oregonians who buy most kinds of insurance sold in the state are protected
if an insurance company becomes insolvent. When a company is insolvent,
it is unable to pay the costs of doing business. Two funds provide this
protection: the Oregon Life and Health Insurance Guaranty Association (OLHIGA)
and the Oregon Insurance Guaranty Association (OIGA).
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How do guaranty funds operate?
When an authorized Oregon insurance company becomes insolvent and is liquidated
by a court order, the guaranty funds will pay covered claims. The guaranty
funds will not pay any claim the insurance company would not have paid.
Claims are paid according to the terms of the original insurance policy.
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Who is covered?
Both funds cover only Oregon residents. They pay only claims against insurers
that were licensed to do business in Oregon at the time of the insolvency.
Most insurers licensed to do business in Oregon must belong to one of the
associations.
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What is covered?
The following two charts show the coverage and limits of the two guaranty
funds.
Oregon Insurance Guaranty Association (Property and Casualty)
10700 SW Beaverton Hwy., Suite 426
Beaverton, OR 97005
503-641-7132
Oregon Revised Statutes (ORS) 734.510 to 734.710
| Type of Insurance |
Limits of Coverage |
| Auto, liability and homeowners |
$300,000 |
| Workers' compensation |
No limits |
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Not covered:
- Title insurance
- Surety or builder's bond insurance
- Credit insurance
- Mortgage guarantee insurance
- Home protection insurance (e.g., home warranties)
- Wet marine and transportation insurance
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Oregon Life and Health Insurance Guaranty Association
3355 N. Five Mile Road #210
Boise, ID 83713
855-378-9510
Oregon Revised Statutes (ORS) 734.750 to 734.890
| Type of Insurance |
Limits of Coverage |
| Life insurance death benefits |
$300,000 |
| Life insurance cash value |
$100,000 |
| Annuity benefits |
$250,000 |
| Disability benefits |
$300,000 |
| Long-term care |
$300,000 |
| Health insurance (other than major medical, hospital
and surgical) |
$100,000 |
| Major medical, hospital and surgical |
$500,000 |
| Maximum/individual insolvency |
$300,000 or $500,000 (major medical) |
| Chart limits are accurate for companies
that became insolvent on or after May 27, 2011. Prior to May 27, 2011,
some Guaranty Fund limits were lower. |
Not covered:
- Most variable life and annuity policies or parts of policies with
variable earnings potential. If part of a variable life or annuity policy
is guaranteed by an insurance company, that part will be covered by
the Oregon Life and Health Guaranty Association up to the association
limits.
- Any annuity contract or group annuity certificate which is not issued
to and owned by an individual. Some pension funds have such investments.
A governmental entity's employee retirement plan is covered.
- Policies issued by health care service contractors (such as Kaiser
Permanente or Regence BlueCross BlueShield of Oregon) are not covered.
However, a separate law protects these policyholders. Health care service
contracts contain a "hold harmless" provision which shields
the policyholder from collection by health care providers and pharmacies
in the event of an insolvency.
- Self-insured plans.
- Polices issued by fraternal benefit societies.
- Interest rates exceeding a certain standard are subject to adjustment.
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