4.3 Idaho Life and Health Insurance Guaranty Association
Key Takeaways
- ILHIGA protects Idaho 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
The Idaho Life and Health Insurance Guaranty Association (ILHIGA) protects Idaho 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
How It Works
When an insurer becomes insolvent:
- State takes over - Insurance Director 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
ILHIGA 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 (Idaho residents)
- Annuities
- Health insurance
- Disability income insurance
- Long-term care insurance
Not Covered
- Policies from insurers not licensed in Idaho
- 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 Idaho guaranty association for a life insurance policy?
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Test Your Knowledge
Can an Idaho insurance producer use guaranty association coverage as a selling point?
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B
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D
Test Your Knowledge
What is the maximum annuity coverage provided by the Idaho guaranty association?
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D
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