Washington Life & Disability Insurance Guaranty Association PO Box 2292 / Shelton, WA 98584 Home About Us FAQs Receiverships Additional Info Links Terms of Use Contact Us Frequently Asked Questions      What will happen to my insurance coverage if the guaranty association becomes liable for my policy? Protection can be provided in one of several different ways. For example, a financially sound insurer may take over the troubled company's policies and assume the responsibility for continuing coverage and paying covered claims. The Washington guaranty association may provide coverage directly by continuing the insurer's policies. In some situations, the Washington guaranty association may work with other state guaranty associations to develop an overall plan to provide protection for the failed insurer's policyholders. The amount of protection provided and when you receive it may depend on the particular arrangement worked out for handling the failed insurer's obligations. State law allows the guaranty association to continue your coverage for only a limited period of time. With respect to group policies, coverage is continued until the earlier of the next renewal date, or for 45 days, but in no event less than 30 days after the guaranty association is activated. With respect to nongroup policies, coverage is continued until the earlier of the next renewal date, if any, or one year, but in no event less than 30 days after the guaranty association is triggered.   NOTE: This information is not intended as legal advice, and no liability is assumed in connection with its use. The applicable state guaranty association statute is the controlling authority, regardless of any information presented on this site. Users should seek advice from a qualified attorney and should not rely on this compilation when considering any questions relating to guaranty association coverage.   [ Back to FAQ list ]