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Key Takeaways

  • The Oklahoma Life and Health Insurance Guaranty Association protects policyholders when insurers become insolvent
  • Coverage limits are \$300,000 for life insurance death benefits and \$100,000 for cash values
  • Health insurance coverage is limited to \$500,000 per individual
  • Annuity coverage is limited to \$250,000 per contract owner
  • Producers cannot use guaranty association coverage as a selling point
Last updated: January 2026

Oklahoma Life and Health Insurance Guaranty Association

The Oklahoma Life and Health Insurance Guaranty Association (36 O.S. § 2025) protects Oklahoma residents when life and health insurance companies become insolvent.

Purpose and Function

The Association was established under Oklahoma law to:

  • Protect persons against failure in the performance of contractual obligations
  • Address impairment or insolvency of member insurers
  • Continue coverage or pay claims up to limits
  • Funded by assessments on member insurers

How It Works

When an insurance company goes out of business:

  1. In most cases, the Association will continue coverage
  2. Coverage continues as long as premiums are paid or cash value exists
  3. May transfer the policy to another insurance company
  4. Or directly administer the policy

Coverage Limits

The Association provides coverage up to specific limits:

Life Insurance

Benefit TypeMaximum Coverage
Death Benefit$300,000 per insured life
Cash Surrender Value$100,000 per insured life

Annuities

Benefit TypeMaximum Coverage
Present Value$250,000 per contract owner

Health Insurance

Coverage TypeMaximum Coverage
Major Medical$500,000 per individual

Producer Restrictions

Producers cannot:

  • Use guaranty association coverage as a selling point
  • Advertise guaranty association protection
  • Imply policies are "guaranteed" by the association
  • Compare guaranty association to FDIC insurance

Exam Tip: Remember that producers CANNOT use guaranty association coverage as a selling point.

Test Your Knowledge

What is the maximum death benefit coverage provided by the Oklahoma Guaranty Association?

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Test Your Knowledge

Can an Oklahoma insurance producer use guaranty association coverage as a selling point?

A
B
C
D
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