Information on this site is written in non-technical language to give a general overview of the guaranty system and provide some resources for site visitors. The overview and resource references are intended to help insured persons and professional advisers address questions and issues about the protection afforded life and health insurance policies and annuity contracts.
The Montana Life & Health Insurance Guaranty Association (the "guaranty association") is a statutory entity that was created in 1974 when the Montana legislature enacted the Montana Guaranty Association Act. All insurers licensed to sell life insurance, accident and health insurance, and individual annuities in the state of Montana are members of the guaranty association. In the event that a court finds a member insurer to be insolvent and orders it to be liquidated, the guaranty association provides protection (up to the limits spelled out in the Guaranty Association Act) to Montana residents who hold covered policies and contracts with the insolvent insurer.
When a court orders an insolvent member insurer to be liquidated, a special deputy receiver takes over the insurer and processes its assets and liabilities through liquidation under court supervision. The task of servicing the insurance company's policies and providing coverage to Montana's resident policyholders becomes the responsibility of the guaranty association. The protection provided by the guaranty association is based on Montana law and the language of the insolvent company's policies at the time of insolvency.
Please Note: This Web site is for general information purposes and should not be relied upon as legal advice. A link is provided in the Additional Info section for access to the Montana Guaranty Association Act (Mont. Code Anno. Sections 33-10-201 et seq.) on the Internet. If the Guaranty Association Act or any other law or regulation is inconsistent with the information on this website, the relevant law will supersede. We make every effort to ensure that the information provided here is current. However, applicable law is subject change by legislative amendment or judicial ruling. Because of these potential changes in law and significant variations in policy language, the guaranty association cannot make statements about coverage of a specific policy unless it is a policy with a company for which the association has been activated to provide protection. If you have specific legal questions regarding these issues, please consult a qualified legal counselor.
We hope the information provided in this Web site is useful. Be sure to read the Frequently Asked Questions section of the site for more information, and please refer to the Contact Us section if you have any questions for the guaranty association.