Life Insurance Company Guaranty Corporation of New York Home About Us FAQs Additional Info Links Terms of Use Contact Us Announcements   12/23/2008 $500,000 Protection for New York State Residents   Under New York state law, the Life Insurance Company Guaranty Corporation of New York (LICGC) is required to provide protection, within the limits established by law, to New York residents if a life insurance company becomes insolvent. In general, you are protected if you were a resident of the State of New York either at the time you purchased your policy or at the time the life insurance company is declared insolvent, as long as you purchased your policy from a life insurance company licensed to do business in New York. The limit of protection is $500,000 per life per insolvent company. (Different limits apply to some types of group policies and contracts.) If you own multiple insurance policies or annuity contracts with the same company, all of them together are subject to one $500,000 limit. This $500,000 protection applies to the following types of policies and contracts: • Life insurance policies, including death benefits, guaranteed cash values, and accumulated dividends and interest. • Fixed annuity contracts, including death benefits, cash values (principal and interest), and periodic payments. • Fixed accounts of variable annuity contracts, including death benefits and cash values (principal and interest). • Minimum guaranteed benefits under variable annuity contracts, including living benefits, death benefits, and minimum cash values (principal and interest), to the extent guaranteed by the insurance company. • Individual health insurance policies, including long term care insurance policies, if issued by a life insurance company. In most cases, if your life insurance company becomes insolvent, your insurance policy or annuity contract will remain in force, and the LICGC will continue providing coverage and benefits under the terms of your policy or contract subject to the applicable limits. It may do this directly, or it may transfer the policy or contract to another insurance company. In some cases, however, the courts may delay cash withdrawals or other benefit payments to allow time to sort out the affairs of the financially troubled insurer. To keep your coverage in force, you will need to continue making any premium payments that are required under your policy. This summary is not intended to describe all aspects of the LICGC. Other exclusions and limitations to coverage may apply. For further details, please see the FAQs section of our web site at www.nylifega.org. IMPORTANT NOTE: This notice is not intended as legal advice or other professional advice, and no liability is assumed in connection with its use. You should seek advice from a qualified attorney and should not rely on this summary when considering questions relating to LICGC coverage. The New York Insurance Law is the controlling authority, regardless of any information presented in this summary.