Key Takeaways
- The West Virginia Guaranty Association 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 association coverage as a selling point
Last updated: January 2026
West Virginia Life and Health Insurance Guaranty Association
The West Virginia Life and Health Insurance Guaranty Association protects 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 state law supervision
Coverage Limits
West Virginia 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 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 West Virginia Guaranty Association?
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Test Your Knowledge
Can a West Virginia insurance producer use guaranty association coverage as a selling point?
A
B
C
D
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