The Indiana Association is a non-profit statutory entity created in 1978 when the Indiana legislature enacted the Indiana Life and Health Insurance Guaranty Association Act (“Act”). The Indiana Association is composed of most insurance companies licensed to sell life insurance, health insurance, and annuities in the state of Indiana. In the event that a member insurer is found to be insolvent and is ordered to be liquidated by a court, the Act enables the Indiana Association to provide protection (up to the limits spelled out in the Act) to Indiana residents who are holders of life and health insurance policies and annuities issued by the insolvent member insurer.
Specifically, when a court finds a member insurer to be insolvent and orders the member insurer to be liquidated, a special deputy receiver takes over the insolvent insurance company under court supervision and processes the insurer's assets and liabilities through liquidation. The task of servicing the insolvent member insurance company's policies and providing coverage to Indiana's resident policyholders becomes the responsibility of the Indiana Association. The protection provided by the Indiana Association is based on Indiana law and the language of the insolvent company's policies at the time of liquidation. Because of statutory limitations on policyholder protection, it is possible that the Indiana Association may not cover your policy or may not cover your policy in full.
The Act was last amended in 2013. Coverage obligations and limitations set forth in the 2013 amendments to the Act are applicable in liquidations occurring on or after January 1, 2013, and are different than those for liquidations commenced prior to that date. If you have questions concerning statutory provisions applicable to an insurance company placed into liquidation prior to January 1, 2013, please contact the Indiana Association. The information set forth in the Frequently Asked Questions section of this Web site relates to the Act as Amended in 2013.
We will make every effort to ensure that the information provided here is in accordance with the most current law. However, if there should be any inconsistency between the Act or any other law or regulation and the information on this Web site, the relevant law will control. Because of the variations in policy language, the Indiana Association cannot make statements regarding coverage of a specific policy unless it is a policy with an insurance company for which the Indiana Association has been activated to provide coverage. Finally, this Web site is for general information purposes and should not be relied upon as legal advice.
Again, we hope the information provided in this Web site is useful. Be sure to read the Frequently Asked Questions section of the site for more information, and please refer to the Contact Us section if you have any questions for the Indiana Association.