“What insurance options are available, and what happens if the annuity issuer becomes insolvent?”
In discussions about structured settlements and other financial products, a common question often arises. While it is an important query, many state laws prohibit licensed insurance agents or brokers from providing an answer. This restriction is not a deceptive practice; rather, it is intended to deter salespeople from recommending inferior products or companies under the justification that they are insured. So what do you do?
Contact the Department of Financial Services in Your State
So how does one find out information? 4structures.com, LLC has compiled a list of State Insurance Department websites, including their contact numbers as a starting point for your research. Click here to access the list.
Visit the NOLHGA website and/or Contact NOLHGA
The National Organization of Life and Health Guarantee Assocations (NOLHGA) is another useful resource. NOLHGA was founded in 1983 when the state guaranty associations determined that there was a need for a mechanism to help them coordinate their efforts to provide protection to policyholders when a life or health insurance company insolvency affects people in many states. Click here to access the NOLHGA website.
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