If an individual is receiving pension benefits from an insurance company in the form of an annuity and the insurance company becomes unable to pay, a state guaranty association may be responsible for all, part or none of the annuity. All states, Puerto Rico and the District of Columbia have guaranty associations that protect policyholders, up to specified limits, in the event an insurance company is financially unable to meet its obligations.

Generally, where the individual lives at the time the insurance company is unable to pay determines which guaranty association is responsible. In certain circumstances, other factors, such as where the insurance company is licensed to do business, determine which guaranty association may be responsible.

See the National Organization of Life & Health Insurance Guaranty Associations (NOLHGA) website for current information on state guaranty associations.