4.3 Oregon Life and Health Insurance Guaranty Association
Key Takeaways
- The Oregon 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
The Oregon Life and Health Insurance Guaranty Association protects Oregon residents when life and health insurance companies become insolvent.
Purpose and Function
The Association was established under Oregon law to:
- Protect policyholders of insolvent insurers
- Continue coverage or pay claims up to limits
- Funded by assessments on member insurers
- Operates under state law supervision
Coverage Limits
The Association provides coverage up to specific limits:
Life Insurance
| Benefit Type | Maximum Coverage |
|---|---|
| Death Benefit | $300,000 per insured life |
| Cash Surrender Value | $100,000 per insured life |
Annuities
| Benefit Type | Maximum Coverage |
|---|---|
| Present Value | $250,000 per contract owner |
Health Insurance
| Coverage Type | Maximum 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.
Exam Focus
For Oregon Life and Health Insurance Guaranty Association, turn the section into a scenario checklist. Identify who has the duty, what document or notice is required, when the rule is triggered, what conduct is prohibited, and which number or deadline must be remembered. State exam questions often use familiar facts with one small twist, so compare this rule against the national rule and against similar state-specific sections. If an answer choice ignores disclosure, timing, documentation, or consumer protection, treat it as a likely distractor.
What is the maximum death benefit coverage provided by the Oregon Guaranty Association?
Can an Oregon insurance producer use guaranty association coverage as a selling point?
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