The Massachusetts Life and health Insurance Guaranty Association is a statutory entity created in 1986 when the Massachusetts legislature enacted the Massachusetts Life and Health Insurance Guaranty Association Law. The guaranty association is composed of all legal reserve insurers licensed to sell life insurance, accident and health insurance, and individual annuities in the Commonwealth of Massachusetts. In the event that a member insurer is found to be insolvent and is ordered to be liquidated by a court, the Guaranty Association Law enables the guaranty association to provide protection (up to the limits spelled out in the Law) to Massachusetts residents who are holders of life and health insurance policies and individual annuities with the insolvent insurer.
Specifically, when a member insurer is found to be insolvent and is ordered liquidated, the Commissioner of Insurance takes over the insurer under court supervision and processes the assets and liabilities through liquidation. The task of servicing the insurance company's policies and providing coverage to Massachusetts's resident policyholders becomes the responsibility of the guaranty association. The protection provided by the guaranty association is based on Massachusetts law and the language of the insolvent company's policies at the time of insolvency.
We will make every effort to ensure that the information provided here is in accordance with the most current law in the event that the Massachusetts legislature amends the Guaranty Association Act or other laws. However, if there should be any inconsistency between the Guaranty Association Law or any other law or regulation and the information on this Web site, the relevant law will supersede. In light of these changes in law and the dramatic variations in policy language, the association cannot make statements regarding coverage of a specific policy unless it is a policy with a company for which the association has been activated to provide protection. 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 guaranty association.