|
|
Life Insurance Policy and/or Annuity Contract Protection in the Event of an Issuing Company Failure
|
Published: February 27, 2009
Author: Richard Petershack
In Wisconsin as long as you're a state resident and your insurance company is licensed to do business in Wisconsin, your life insurance policies and annuities are insured by the Wisconsin Insurance Security Fund. You can check to see whether or not the policy has been issued by a licensed company by calling 608.266.3586. Insurance coverage is limited as follows:
- Life Insurance Death Benefit: $300,000 per insured life
- Life Insurance Cash Surrender: $300,000 per insured life
- Annuity Benefits (Present Value): $300,000 per contract owner
Based on the Wisconsin Insurance Security Fund Web site, it appears the limits are applied per policy or contract type (so you could have a $300,000 life insurance policy and a $300,000 annuity contract from the same company and have full coverage for both).
It's possible (probably likely) that before a payment is made from the Wisconsin Insurance Security Fund a sound insurance company will be found to take over the failed company's policies and contracts. The Fund exists as a backup to protect consumers and to assist in transitioning insurance policies and contracts from failed insurers to sound ones.
If you have any questions, feel free to contact me at 608.283.6726 or rpetershack@axley.com, or one of the Axley Brynelson attorneys specializing in insurance issues.
Axley Brynelson is pleased to provide articles, legal alerts, podcasts and videos for informational purposes, but we are not giving legal advice or creating an attorney/client relationship by providing this information. The law constantly changes, and our publications may not be currently updated. Before relying on any legal information of a general nature, please consult legal counsel as to your particular situation. While our attorneys welcome your comments and questions, keep in mind that any information you provide us, unless you are now a client, will not be confidential.
|
|
