Key Takeaways
- The Wisconsin Insurance Security Fund protects policyholders when insurers become insolvent
- Life insurance death benefits are covered up to \$300,000
- Annuity coverage is limited to \$250,000
- Health insurance coverage has separate limits
- Producers cannot use guaranty fund coverage as a selling point
Last updated: January 2026
Wisconsin Insurance Security Fund
The Wisconsin Insurance Security Fund (formerly called the Life and Health Insurance Guaranty Association) protects residents when life and health insurance companies become insolvent.
Purpose and Function
The Security Fund:
- Protects policyholders of insolvent insurers
- Continues coverage or pays claims up to limits
- Is funded by assessments on member insurers
- Operates under OCI supervision
Coverage Limits
Wisconsin 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 |
| Present Value (total) | $300,000 per life |
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 |
Producer Restrictions
Advertising Prohibition
Producers cannot:
- Use guaranty fund coverage as a selling point
- Advertise guaranty fund protection
- Imply policies are "guaranteed" by the fund
- Compare guaranty fund to FDIC insurance
Exam Tip: Remember that producers CANNOT use guaranty fund coverage as a selling point.
Test Your Knowledge
What is the maximum death benefit coverage provided by the Wisconsin Insurance Security Fund?
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Test Your Knowledge
Can a Wisconsin insurance producer use guaranty fund coverage as a selling point?
A
B
C
D
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