4.3 West Virginia Life and Health Insurance Guaranty Association
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
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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