About Us

Maryland - State House

The Guaranty Corporation is a statutory entity created in 1970 when the Maryland General Assembly enacted the Life and Health Insurance Guaranty Corporation Act. The form of organization and name of the Corporation was changed by legislation in 1980. The Guaranty Corporation is composed of all insurers licensed to sell life insurance, accident and health insurance, and individual annuities in the State of Maryland. Under the Guaranty Corporation Act, the Corporation provides limited protection to Maryland residents who are holders of life and health insurance policies and individual annuities issued by the Guaranty Corporation's member insurers in the event that the insurers which issued the insurance policy or individual annuity became insolvent.

The Guaranty Corporation is governed by a Board of Directors elected by and from its member insurers. It operates under the supervision of the Maryland Insurance Commissioner. When an insolvent member insurer is also licensed in states other than Maryland, the Guaranty Corporation generally cooperates with those states guaranty associations under the auspices of the National Organization of Life & Health Insurance Guaranty Associations.


This notice provides a brief summary of the Maryland Life and Health Insurance Guaranty Corporation (the Corporation) and the protection it provides for policyholders. This safety net was created under Maryland law, which determines who and what is covered and the amounts of coverage.

The Corporation is not a department or unit of the State of Maryland and the liabilities or debts of the Life and Health Insurance Guaranty Corporation are no liabilities or debts of the State of Maryland.

The Corporation was established to provide protection in the unlikely event that your life, annuity, or health insurance company becomes financially unable to meet its obligations and is taken over by its Insurance Department. If this should happen, the Corporation will typically arrange to continue coverage and pay claims, in accordance with Maryland law, with funding from assessments paid by other insurance companies.

The basic protections provided by the Corporation are:
• Life Insurance
° $300,000 in death benefits
° $100,000 in cash surrender or withdrawal values

• Health Insurance
° $500,000 for basic hospital, medical, and surgical insurance or major medical insurance provided by health benefit plans
° $300,000 for disability insurance
° $300,000 for long-term care insurance
° $100,000 for a type of health insurance not listed above, including any net cash surrender and net cash withdrawal values under the types of health insurance listed above

• Annuities
° $250,000 in the present value of annuity benefits, including net cash withdrawal values and net cash surrender values
° With respect to each payee under a structured settlement annuity or beneficiary of the payee, $250,000 in present value annuity benefits, in the aggregate, including any net cash surrender and net cash withdrawal values.
• The maximum amount of protection for each individual, regardless of the number of policies or contracts, is:
° $300,000 in aggregate for all types of coverage listed above, with the exception of basic hospital, medical, and surgical insurance or major medical insurance
° $500,000 in aggregate for basic hospital, medical, and surgical insurance or major medical insurance

NOTE: Certain policies and contracts may not be covered or fully covered. For example, coverage does not extend to any portion(s) of a policy or contract that the insurer does not guarantee, such as certain investment additions to the account value of a variable life insurance policy or a variable annuity contract. There are also various residency requirements and other limitations under Maryland law.