The Rhode Island Life & Health Insurance Guaranty Association is a statutory entity created in 1985 when the Rhode Island General Assembly enacted the Rhode Island Guaranty Association Act. The guaranty association is composed of all legal reserve insurers licensed to sell life insurance, accident and health insurance, and individual annuities in the state of Rhode Island. In the event that a member insurer is found to be insolvent and is ordered to be liquidated by a court, the Guaranty Association Act enables the guaranty association to provide protection (up to the limits spelled out in the Act) to Rhode Island 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, a special deputy receiver 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 Rhode Island's resident policyholders becomes the responsibility of the guaranty association. The protection provided by the guaranty association is based on Rhode Island 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 Rhode Island General Assembly amends the Guaranty Association Act or other laws. However, if there should be any inconsistency between the Guaranty Association Act 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.