Insurance Dept.

General Agency, Board or Commission Rules

Chapter 43: Wyoming Life and Health Insurance Guaranty Association Notice

Effective Date: 01/08/2015 to 12/09/2016

Rule Type: Superceded Rules & Regulations

Reference Number: 044.0002.43.01082015

CHAPTER 43

WYOMING LIFE AND HEALTH INSURANCE GUARANTY ASSOCIATION NOTICE

Section 1. Authority

This regulation is issued pursuant to the authority vested in the Wyoming Insurance Commissioner under W.S. 26-2-110 and W.S. 26-42-116 of the Wyoming Insurance Code and W.S. 16-3-101, et seq. of the Wyoming Administrative Procedure Act.

Section 2. Purpose

The purpose of this regulation is to implement Chapter 42 of the Wyoming Insurance Code, also known as the Wyoming Life and Health Insurance Guaranty Association Act.

Section 3. Applicability and Scope

This regulation applies to every member insurer in the Wyoming Life and Health Insurance Guaranty Association as defined in W.S. 26-42-102(a)(vii).

Section 4. Notices

Pursuant to W.S. 26-42-116 the Insurance Commissioner hereby promulgates this regulation in order to establish the form and content of the disclaimer (Appendix A), the summary document describing the general purposes and current limitations of the Association (Appendix A), and the notice required to be used when a policy is not covered by the Guaranty Association (Appendix A).

Appendix A is to be used by each insurer and shall be given to each insured either prior to or at the time of delivery of the policy or contract. If the policy is not covered by the Association, no insurer or agent shall deliver a policy or contract unless the insurer or agent prior to or at the time of delivery gives the policyholder or contract holder the appropriate notice as found in Appendix A, which clearly discloses that the policy is not covered by the Association.

Appendix A contains an address and telephone number for the Wyoming Life and Health Insurance Guaranty Association and for the Wyoming Insurance Department. Should the address or telephone number change, the Wyoming Life and Health Insurance Guaranty Association will send written notice to each member insurer.

Section 5. Separability

Any section or provision of this regulation held by a court to be invalid or unconstitutional shall not affect the validity of any other section or provision of this regulation.

Section 6. Effective Date

This regulation shall be effective sixty (60) days after filing with the Secretary of State.

NOTICE OF

PROTECTION PROVIDED BY WYOMING LIFE AND HEALTH INSURANCE GUARANTY ASSOCIATION

This notice provides a brief summary of the Wyoming Life and Health Insurance Guaranty Association (“the Association”) and the protection it provides for policyholders. This safety net was created under Wyoming law, which determines who and what is covered and the amounts of coverage.

The Association was established to provide protection in the unlikely event that your life, annuity or health insurance company becomes financially unable to meet its obligations and is taken over by its Insurance Department. If this should happen, the Association will typically arrange to continue coverage and pay claims, in accordance with Wyoming law, with funding from assessments paid by other insurance companies.

The basic protections provided by the Association are:

1. Life Insurance
2. $300,000 in death benefits
3. $100,000 in cash surrender or withdrawal values
4. Health Insurance
5. $300,000 in hospital, medical and surgical insurance benefits or major medical insurance
6. $300,000 in disability insurance benefits
7. $300,000 in disability income insurance
8. $300,000 in long-term care insurance benefits
9. $100,000 in other types of health insurance benefits
10. Annuities
11. $250,000 in withdrawal and cash values

The maximum amount of protection for each individual, regardless of the number of policies or contracts, is $500,000

Note: Certain policies and contracts may not be covered or fully covered.

For example, coverage does not extend to any portion(s) of a policy or contract that the insurer does not guarantee, such as certain investment additions to the account value of a variable life insurance policy or a variable annuity contract. There are also various residency requirements and other limitations under Wyoming law.

EXCLUSIONS FROM COVERAGE

Persons holding such policies are not protected by this Association if:

1. they are eligible for protection under the laws of another state (this may occur when the insolvent insurer was incorporated in another state whose guaranty association protects insureds who live outside that state);
2. the insurer was not authorized to do business in this state;
3. their policy was issued by a fraternal benefit society, a mandatory state pooling plan, a stipulated premium insurance company, a local mutual burial association, a mutual assessment company, or similar plan in which the policy-holder is subject to future assessments, or by an insurance exchange.

The Association also does not provide coverage for:

1. any policy or portion of a policy which is not guaranteed by the insurer or for which the individual has assumed the risk, such as a variable contract sold by prospectus;
2. any policy of reinsurance (unless an assumption certificate was issued pursuant to the reinsurance policy of contract);
3. interest rate yields that exceed an average rate or interest earned on an equity indexed policy;
4. dividends;
5. credits given in connection with the administration of a policy by a group contract holder;
6. annuity contracts issued by a nonprofit insurance company exclusively for the benefit of nonprofit educational institutions and their employees;
7. unallocated annuity contracts (which give rights to group contract holders, not individuals);
8. any plan or program of an employer or association that provides life, health or annuity benefits to its employees or members to the extent the plan is self-funded or uninsured;
9. an obligation that does not arise under the express written terms of the policy or contract;
10. Medicare supplement plans.

To learn more about the above protections, protections relating to group contracts or retirement plans, and all exclusions from coverage, please visit the Association's website at wyoming.lhiga.com or contact:

Wyoming Life and Health Insurance Guaranty Association P.O. Box 36009 Denver, CO 80236-0009 Phone: (303) 292-5022 Toll Free: (888) 959-4091 Fax: (303) 292-4663 Website: wyoming.lhiga.com Email: jkelldorf@aol.com

Wyoming Department of Insurance 106 East 6th Avenue Cheyenne, WY 82002

Phone: (307) 777-7401 Toll Free: (800) 438-5768 Fax: (307) 777-2446 Website: doi.wyo.gov Email: wyinsdep@wyo.gov

Insurance companies and agents are not allowed by Wyoming law to use the existence of the Association or its coverage to encourage you to purchase any form of insurance. When selecting an insurance company, you should not rely on Association coverage. If there is any inconsistency between this notice and Wyoming law, then Wyoming law will control.