Regulators Adopt Amendments to Life and Health Guaranty Association Model Act

WASHINGTON (Dec. 21, 2017) — The National Association of Insurance Commissioners (NAIC) adopted amendments to the Life and Health Guaranty Association Model Act today during a joint meeting of the Executive (EX) Committee and Plenary.

"These model act amendments reflect our continued commitment to protecting policyholders from loss due to insolvency," said Ted Nickel, NAIC President and Wisconsin Insurance Commissioner. "State insurance regulators acted quickly to identify and address issues potentially affecting consumers should there be any future health or long-term care solvency issues, underscoring our commitment to supporting a healthy state-based guaranty association system."

The model law amendments address:

  • Issues arising out of long-term care insurance (LTCI) insolvencies by expanding the assessment base for LTCI insolvencies to include both the life and annuity account and the health account.
  • More equitably allocating the assessments for LTCI insolvencies, which currently fall solely upon member guaranty association insurers that write lines–including LTCI–that are considered health insurance coverage in insolvency.
  • Adding health maintenance organizations (HMOs) as members of the guaranty association to provide coverage for HMO insolvencies similar to all other health insurers.

The model law progressed through the Financial Condition (E) Committee at the NAIC Fall 2017 National Meeting and the Receivership and Insolvency (E) Task Force and the Receivership Model Law (E) Working Group during an interim joint session on Nov. 29. Input was solicited from regulators as well as industry and consumer representatives throughout the drafting process.

About the NAIC

The National Association of Insurance Commissioners (NAIC) is the U.S. standard-setting and regulatory support organization created and governed by the chief insurance regulators from the 50 states, the District of Columbia and five U.S. territories. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and coordinate their regulatory oversight. NAIC staff supports these efforts and represents the collective views of state regulators domestically and internationally. NAIC members, together with the central resources of the NAIC, form the national system of state-based insurance regulation in the U.S. For more information, visit

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