# Title 45 — Insurance, Commissioner of

## Article 45-11 — Life and Health Insurance Guaranty Association

## Chapter 45-11-01 — Notice to Policy Owners

### § 45-11-01-01. Required notice to policy owners.

A document that describes the general purposes and current limitations of the North Dakota life and
health insurance guaranty association as required by subsections 2 and 3 of section 26.1-38.1-16 of
the North Dakota Century Code must be in the form and contain the language printed in the notice
shown in exhibit A.
History: Effective September 1, 1990; amended effective January 1, 2000; July 1, 2012.
General Authority: NDCC 26.1-38.1-16
Law Implemented: NDCC 26.1-38.1-16

(Exhibit A cannot be accurately reproduced for publication. Users should contact the Insurance
Commissioner to obtain a correct copy)
This notice provides a brief summary of the North Dakota Life and Health Insurance Guaranty
Association ("the Association") and the protection it provides for policyholders. This safety net was
created under North Dakota law, which determines who and what is covered and the amounts of
coverage.
The Association 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 Association will typically arrange to continue coverage
and pay claims, in accordance with North Dakota law, with funding from assessments paid by other
insurance companies. (For purposes of this notice, the terms "insurance company" and "insurer"
include health maintenance organizations (HMOs).)
The protections provided by the Association are based on contract obligations up to the following
amounts:
1. Life Insurance
a. $300,000 in death benefits
b. $100,000 in cash surrender or withdrawal values
2. Health Insurance
a. $500,000 for health benefit plans (see definition below)
b. $300,000 in disability income insurance benefits
c. $300,000 in long-term care insurance benefits
d. $100,000 in other types of health insurance benefits
3. Annuities
a. $250,000 in the present value of annuity benefits, including net cash surrender and net
cash withdrawal values
The maximum amount of protection for each individual, regardless of type of coverage is $300,000;
however, may be up to $500,000 with regard to health benefit plans.
"Health benefit plan" is defined in North Dakota Century Code Section 26.1-38.1-02(10) and generally
includes hospital or medical expense policies, contracts or certificates, or HMO subscriber contracts
that provide comprehensive forms of coverage for hospitalization or medical services, but excludes
policies that provide coverages for limited benefits (such as dental-only or vision-only insurance),
Medicare Supplement insurance, disability income insurance, and long-term care insurance (LTCI).
Benefits provided by a long-term care (LTC) rider to a life insurance policy or annuity contract shall be
considered the same type of benefits as the base life insurance policy or annuity contract to which it
relates.

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. If coverage is available, it will be subject to substantial limitations. There are also various
residency requirements and other limitations under North Dakota law. To learn more about the above
protections, as well as protections relating to group contracts or retirement plans, please visit the
Association's website at www.ndlifega.org or contact:
North Dakota Life and Health Insurance Guaranty North Dakota Insurance Department
Association
P.O. Box 2422 600 East Boulevard Avenue, Dept. 401
Fargo, ND 58108 Bismarck, ND 58505
A written complaint to allege a violation of any provision of the Life and Health Insurance Guaranty
Association Act must be filed with the North Dakota Insurance Department, 600 East Boulevard
Avenue, Dept. 401, Bismarck, North Dakota 58505; telephone (701) 328-2440. Financial information for
an insurance company, if the information is not proprietary, is available at the same address and
telephone number and on the Insurance Department website at www.nd.gov/ndins.
Insurance companies and agents are not allowed by North Dakota law to use the existence of
the Association or its coverage to sell, solicit, or induce you to purchase any form of insurance
or HMO coverage. When selecting an insurance company, you should not rely on Association
coverage. If there is any inconsistency between this notice and North Dakota law, then North
Dakota law will control.
