Illinois Administrative Code › Title 50 - INSURANCE › Part 3401 - SUMMARY DOCUMENT AND DISCLAIMER › ILLUSTRATION A - Summary Document and Disclaimer

Current through Register Vol. 48, No. 28, July 12, 2024
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.