Key Takeaways
- DCLHIGA protects DC policyholders when insurers become insolvent
- Coverage limits include \$300,000 for life insurance death benefits
- Health insurance coverage is limited to \$500,000 per individual
- Annuity coverage is limited to \$250,000 in present value
- Producers cannot use guaranty association coverage as a selling point
Last updated: January 2026
DC Life and Health Insurance Guaranty Association
The DC Life and Health Insurance Guaranty Association (DCLHIGA) protects DC residents when life and health insurance companies become insolvent.
Purpose and Function
The guaranty association:
- Protects policyholders of insolvent insurers
- Continues coverage or pays claims up to limits
- Is funded by assessments on member insurers
- Operates under DISB supervision
How It Works
When an insurer becomes insolvent:
- DISB takes over - Places insurer in liquidation
- Association activates - Takes responsibility for covered policies
- Coverage continues - Up to statutory limits
- Claims paid - Benefits paid to policyholders
Coverage Limits
DCLHIGA provides coverage up to specific limits:
Life Insurance
| Benefit Type | Maximum Coverage |
|---|---|
| Death Benefit | $300,000 per life |
| Cash Surrender Value | $100,000 per policy |
Annuities
| Benefit Type | Maximum Coverage |
|---|---|
| Present Value | $250,000 per contract |
Health Insurance
| Coverage Type | Maximum Coverage |
|---|---|
| Health Benefits | $500,000 per individual |
| Disability Income | $300,000 per individual |
| Long-Term Care | $300,000 per individual |
What Is Covered
Covered Policies
- Individual life insurance
- Group life insurance (DC residents)
- Annuities
- Health insurance
- Disability income insurance
- Long-term care insurance
Not Covered
- Policies from insurers not licensed in DC
- Self-funded employer plans
- Government programs
- Surplus lines policies
- Amounts above coverage limits
Producer Restrictions
Advertising Prohibition
Producers cannot:
- Use guaranty association coverage as a selling point
- Advertise guaranty association protection
- Imply policies are "guaranteed" by the association
- Compare to FDIC insurance
- Use guaranty coverage to induce sales
Exam Tip: Remember that producers CANNOT use guaranty association coverage as a selling point. This is a frequently tested rule.
Test Your Knowledge
What is the maximum death benefit coverage provided by the DC guaranty association for a life insurance policy?
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Test Your Knowledge
Can a DC insurance producer use guaranty association coverage as a selling point?
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B
C
D
Test Your Knowledge
What is the maximum annuity coverage provided by the DC guaranty association?
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B
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D
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