Life Insurance Company Guaranty Corporation of New York Home About Us FAQs Additional Info Links Terms of Use Contact Us Frequently Asked Questions      I have a variable annuity or variable life insurance contract, in which my funds are invested separately from those of the life insurance company. What kind of protection do I have? If the separate account contract guarantees a minimum return, the contract holder is protected by the Life Insurance Company Guaranty Corporation, but only for the portion of the contract that is guaranteed. The guaranty corporation provides no protection for funds invested in a separate account for which the contract holder bears the entire risk of gains or losses under the contract. However, assets in a separate account would normally retain their separate status in the event of the insolvency of the issuing insurer and could not be used to pay that insurer's other debts and obligations that do not arise out of the business of the separate account.   NOTE: This information is not intended as legal advice, and no liability is assumed in connection with its use. The applicable state guaranty association statute is the controlling authority, regardless of any information presented on this site. Users should seek advice from a qualified attorney and should not rely on this compilation when considering any questions relating to guaranty association coverage.   [ Back to FAQ list ]