Ohio Department of Insurance Director Mary Jo Hudson has announced that a recent amendment to Ohio insurance law by the Ohio General Assembly has increased The Ohio Life and Health Insurance Guaranty Association’s coverage protection for annuities from $100,000 to $250,000. The change goes into effect on May 26th, 2010.
The new changes to the law (Section 3956.04 of the Ohio Revised Code) will guarantee that consumers who purchase an annuity product may be able to recover up to $250,000 of their policy in the unlikely event that the company they purchased the product from becomes insolvent.
The Ohio Life & Health Insurance Guaranty Association (OLHIGA) is a non-profit association of insurance companies that sell life insurance, health insurance, and annuities in Ohio. It was created by Ohio law to provide some level of protection for certain Ohio policyholders against the insolvency of an insurance company licensed to sell those types of policies in Ohio in the event that the company is placed into liquidation.
Ohioans with questions about The Ohio Life and Health Insurance Guaranty Association Ohioans can visit their web site. Those with questions concerning insurance are encouraged to call the Department’s consumer services hotline, 1-800-686-1526 . Additional tips and more information about insurance, including a link to the "Insure U" web site, can be found at the Department’s web site.
A friendly reminder to agents and brokers: Ohio Revised Code § 3956.18 prohibits using the existence of the Ohio life and health insurance guaranty association for the purposes of sales, solicitation, or inducement to purchase any form of insurance.
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