Nat'l Org. of Life And Health Insurance Guaranty Associations (NOLHGA)

National Organization of Life and Health Insurance Guaranty Associations (NOLHGA) is a voluntary organization of U.S. life and health insurance guaranty associations. Founded in 1983, it covers policyholders when a multistate life or health insurance company fails. 

National Organization of Life and Health Insurance Guaranty Associations (NOLHGA) serves as a complementary or alternative resource to state guaranty associations. The state associations provide coverage, up to the limits established by law, to residents with policies from insurers licensed to do business in that state. NOLHGA steps in to support and assist policyholders impacted by the insolvency of a multi-state life or health insurance company.

NOLHGA provides a coordinated, centralized resource to assist policyholders affected by these multi-state insolvencies, while also supporting state guaranty associations. When an insolvency occurs, NOLHGA puts together a task force comprised of guaranty association officials and staff members. The task force monitors and evaluates the company’s interactions with policyholders, and ensures that claims are paid and coverage is switched to another insurer, when necessary and possible.

NOLHGA pays policyholders' claims when an insolvent insurance company is unable to do so. The organization raises the needed funds from other insurance companies doing business in the states where the failed insurer was doing business. Each insurance company pays a special assessment in proportion to the amount of premiums it collects in that state.

Since its creation in 1983, NOLHGA has worked in conjunction with its member guaranty associations to guarantee more than $22 billion in coverage benefits to the policyholders of insolvent companies. During that time, NOLHGA and its member associations have assisted and protected more than 2.5 million policyholders and served a critical role in resolving and addressing more than 100 multi-state insolvencies.

NOLHGA provides a valuable benefit to member guaranty associations because they do not have to invest the resources to hire their own team of legal or financial experts or create the infrastructure to handle these situations. Instead, they can call upon the team of experts and professionals that NOLHGA already has available. It translates to considerable cost savings for the member guaranty associations, which in turn means lower costs for their member companies. Because it already has all of the resources and processes in place, NOLHGA can also respond much more quickly when an unexpected situation happens. It can deploy a team immediately and can implement tested processes and systems that are already established.