Reference · 50 states
Annuity guaranty fund limits by state
Every state runs a life and health insurance guaranty association that pays annuity benefits up to a statutory limit if a licensed carrier is placed in liquidation. Most states use the NAIC model limit of $250,000 in present value of annuity benefits per individual, per insolvent insurer. A handful protect more.
The rules behind the number
- Coverage follows the owner's state of residence at the time the carrier is placed in liquidation, not the state where the contract was signed or where the carrier is domiciled.
- Limits apply per individual, per insolvent insurer — not per contract. Two contracts with the same carrier are aggregated; the same amount held with two different carriers is generally covered separately.
- The limit is stated as present value of annuity benefits, not as premium paid or as the account value shown on a statement.
- Guaranty associations are funded by assessments on the other licensed insurers in the state. They are not a government guarantee and are not insured by any federal agency.
- Producers and carriers are prohibited in most states from using guaranty association coverage as a selling point. If it was used in a sales conversation, that is worth noting.
Coverage by state
| State | Annuity present-value limit | Regulator |
|---|---|---|
| Alabama | $250,000 | Alabama Department of Insurance |
| Alaska | $250,000 | Alaska Division of Insurance |
| Arizona | $250,000 | Arizona Department of Insurance and Financial Institutions |
| Arkansas | $250,000 | Arkansas Insurance Department |
| California | 80% of present value, capped at $250,000 | California Department of Insurance |
| Colorado | $250,000 | Colorado Division of Insurance |
| Connecticut | $500,000 | Connecticut Insurance Department |
| Delaware | $250,000 | Delaware Department of Insurance |
| Florida | $250,000 | Florida Department of Financial Services / Office of Insurance Regulation |
| Georgia | $250,000 | Georgia Office of Commissioner of Insurance and Safety Fire |
| Hawaii | $250,000 | Hawaii Insurance Division |
| Idaho | $250,000 | Idaho Department of Insurance |
| Illinois | $250,000 | Illinois Department of Insurance |
| Indiana | $250,000 | Indiana Department of Insurance |
| Iowa | $250,000 | Iowa Insurance Division |
| Kansas | $250,000 | Kansas Insurance Department |
| Kentucky | $250,000 | Kentucky Department of Insurance |
| Louisiana | $250,000 | Louisiana Department of Insurance |
| Maine | $250,000 | Maine Bureau of Insurance |
| Maryland | $250,000 | Maryland Insurance Administration |
| Massachusetts | $250,000 | Massachusetts Division of Insurance |
| Michigan | $250,000 | Michigan Department of Insurance and Financial Services |
| Minnesota | $410,000 | Minnesota Department of Commerce |
| Mississippi | $250,000 | Mississippi Insurance Department |
| Missouri | $250,000 | Missouri Department of Commerce and Insurance |
| Montana | $250,000 | Montana Commissioner of Securities and Insurance |
| Nebraska | $250,000 | Nebraska Department of Insurance |
| Nevada | $250,000 | Nevada Division of Insurance |
| New Hampshire | $250,000 | New Hampshire Insurance Department |
| New Jersey | $500,000 | New Jersey Department of Banking and Insurance |
| New Mexico | $250,000 | New Mexico Office of Superintendent of Insurance |
| New York | $500,000 | New York State Department of Financial Services |
| North Carolina | $250,000 | North Carolina Department of Insurance |
| North Dakota | $250,000 | North Dakota Insurance Department |
| Ohio | $250,000 | Ohio Department of Insurance |
| Oklahoma | $250,000 | Oklahoma Insurance Department |
| Oregon | $250,000 | Oregon Division of Financial Regulation |
| Pennsylvania | $250,000 | Pennsylvania Insurance Department |
| Rhode Island | $250,000 | Rhode Island Division of Insurance Regulation |
| South Carolina | $250,000 | South Carolina Department of Insurance |
| South Dakota | $250,000 | South Dakota Division of Insurance |
| Tennessee | $250,000 | Tennessee Department of Commerce and Insurance |
| Texas | $250,000 | Texas Department of Insurance |
| Utah | $250,000 | Utah Insurance Department |
| Vermont | $250,000 | Vermont Department of Financial Regulation |
| Virginia | $250,000 | Virginia Bureau of Insurance (State Corporation Commission) |
| Washington | $500,000 | Washington State Office of the Insurance Commissioner |
| West Virginia | $250,000 | West Virginia Offices of the Insurance Commissioner |
| Wisconsin | $250,000 | Wisconsin Office of the Commissioner of Insurance |
| Wyoming | $250,000 | Wyoming Department of Insurance |
Limits are set by state statute and change over time. Confirm the current figure with the association in your state through NOLHGA.
Educational content only. Guaranty association coverage may not be used in the solicitation of an annuity. Nothing on this page is a recommendation, an offer, or a guarantee of coverage.