Frequently Asked Questions
Do I need to apply for Assuris protection?
It is not necessary for policyholders to apply for protection or file a claim with Assuris. If your life insurance company fails, each policyholder will be informed by the liquidator on how their respective benefits are protected by Assuris.
What if my company merges or transfers my policy?
Policy benefits that are protected by Assuris at the time of the merger or transfer continue to be protected after the merger or transfer.
If you had a policy with each company prior to the merger, the two separate policies are protected by Assuris independently. If you discontinue your policy or make a significant change to the benefits covered under your policy, the independent protection on that policy ends.
Are structured settlements protected by Assuris?
A structured settlement pays a monthly or yearly benefit in a series of payments to a specific person for the lifetime of the payee or for a prearranged duration.
Lump sum payments under structured settlements are protected under Assuris' Cash Value protection. In each policy year, the lump sum payments is protected for $60,000 or 85%, whichever is higher.
Periodic payments under structured settlements are protected under Assuris' Monthly Income protection. If the total annual periodic payments are:
a) less than or equal to $24,000, the payments are fully protected.
b) exceed $24,000, the payments will be protected for $24,000 or 85%, whichever is higher.
How are policy loans treated for protection purposes?
Assuris' protection is calculated at the date the company fails. Prior to applying Assuris' protection the policy loan and accrued interest outstanding will be deducted. When the transfer takes place, both the policy and the loan will be transferred to the solvent company together. On transfer, the terms of the loan will remain unchanged.
I have policies with multiple affiliated member companies. Am I protected separately for each policy?
Life insurance companies with multiple member companies can issue separate policies to a policyholder. Assuris provides separate protection for each member company. Therefore, policies held by affiliated member companies will receive separate protection.
Please note that similar benefits issued by the same member company are added together before Assuris' protection is applied.
I am an employee of a company which has an Administrative Service Only (ASO) contract with one of your member companies. Does Assuris provide protection for these types of contracts?
Assuris does not provide protection for employees of companies under ASO contracts as there are no insurance policies issued by the member company. The member company only provides administrative services.
Life insurance policies issued over and above an ASO contract are protected as per Assuris' protection rules. The protection does not take into consideration ASO payments.