How does the Nevada Life and Health Insurance Guaranty Association protect policyholders?

The Nevada Life and Health Insurance Guaranty Association (NLHIGA) provides a safety net for Nevada policyholders if a licensed life insurance carrier becomes insolvent and unable to pay claims. This protection exists independent of any promises made by the insurer—it's a statutory backstop funded by assessments on member carriers.

Protection limits as established under Nevada law include up to $300,000 in life insurance death benefits and up to $100,000 in life insurance cash value per covered person per insolvent insurer. Annuity benefits may be covered separately. These limits apply regardless of the total policy face amount, so a $1 million policy would be covered only to $300,000 if the insurer fails.

This underscores why purchasing coverage from financially strong, A-rated (A.M. Best) carriers remains important even with the guaranty association as a backstop. The guaranty association is a last resort, not a substitute for carrier financial strength.

Not all policies and products are covered—contact the NLHIGA or the Nevada Division of Insurance for specific coverage details. Agents in our network represent only A-rated (A.M. Best) carriers to minimize the risk of needing to rely on the guaranty association.