Bill No.: HB0005                  Drafter:  LGC

LSO No.:  12LSO-0066              Effective Date:  July 1, 2012

Enrolled Act No.:  HEA0010

Chapter No.:       CH0036

Prime Sponsor:     Joint Corporations, Elections and Political Subdivisions Interim Committee

Catch Title:       Life and health insurance guarantee association-limitations.

Subject:           Increasing coverages under the life and health insurance guarantee association.

Summary/Major Elements:

· The life and health insurance guarantee association provides backup coverage for policyholders in case life or health insurers become insolvent.

· This act increases the liability for coverage by the association from $100,000 to the following amounts:

· $300,000 for disability, disability income and long term care insurance policies;

· $300,000 for basic hospital, medical and surgical and major medical insurance; and

· $250,000 for annuity benefits.

• The $100,000 limit for coverages not defined as disability, disability income, basic hospital, medical and surgical, major medical or long term care insurance policies remains the same.

Comments:

· Amends major program:  Life and Health Insurance Guarantee Association.