The question often comes up in a discussion of structured settlements and other financial products, "what insurance is available or what happens if the annuity issuer goes belly up?"
It's a great question but one which many state laws preclude the licensed insurance agent or broker from answering. It's not a flim flam, it's designed to be a disincentive for a salesperson from making a recommendation to a customer for an inferior product or company with the reasoning that it's covered by such insurance.
So how does one find out information? 4structures.com, LLC has compiled a list of State Insurance Department websites, including their contact numbers as a starting point for your research. Click here to access the list.
The National Organization of Life and Health Guarantee Assocations (NOLHGA) is another useful resource. NOLHGA was founded in 1983 when the state guaranty associations determined that there was a need for a mechanism to help them coordinate their efforts to provide protection to policyholders when a life or health insurance company insolvency affects people in many states. Click here to access the NOLHGA website.