Bulletin 24-02 Updated Summary Document of ILHIGA

BULLETIN 24-02 To: All Insurance Companies Selling Life Insurance, Health Insurance, or Annuities in Iowa From: Doug Ommen, Iowa Insurance Commissioner RE: Updated Summary Document of Iowa Life and Health Guaranty Association Date: June 25, 2024 Pursuant to Iowa Code section 508C.18A (2019 Acts, SF 556, Ch. 12, Sec. 35 and 36) the Iowa Life and Health Guaranty Association is required to provide a summary document describing the general purposes and current provisions of Iowa Code Chapter 508C (the Iowa Life and Health Guaranty Association Act) containing certain disclosures specified within the section. Since March 1, 2012, insurers in Iowa have been required to deliver the summary document along with the insurance policy or contract to owners of the policy or contract. The purpose of Bulletin 24-02 is to update the summary document to reflect a change to the mailing address of the Iowa Life and Health Guaranty Association. The mailing address of the Iowa Life and Health Guaranty Association prior to this Bulletin was: Iowa Life and Health Insurance Guaranty Association 700 Walnut Street, Suite 1600 Des Moines, IA 50309 The mailing address of the Iowa Life and Health Guaranty Association now is: Iowa Life and Health Insurance Guaranty Association 700 Walnut Street, Suite 1300 Des Moines, IA 50309 The change in the suite number in the mailing address of the Iowa Life and Health Guaranty Association is the only change to Bulletin 21-05. For questions regarding this matter, please contact Jordan Esbrook at Jordan.esbrook@iid.iowa.gov. NOTICE OF PROTECTION PROVIDED BY IOWA LIFE AND HEALTH INSURANCE GUARANTY ASSOCIATION This notice provides a brief summary of the Iowa Life and Health Insurance Guaranty Association Act (the "Association") and the protection it provides for policyholders. This safety net was created under Iowa law, located at Iowa Code Chapter 508C, 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, health insurance company or health maintenance organization 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 Iowa law, with funding from assessments paid by other insurance companies. The basic protections provided by the Association are: Life Insurance: • $300,000 in death benefits • $100,000 in net cash surrender and withdrawal values Health Insurance: • $500,000 for health benefit plans (see definition below) • $300,000 in disability income protection insurance benefits • $300,000 in long-term care insurance benefits • $100,000 in other types of health insurance benefits, including net cash surrender and withdrawal values Annuities: • $250,000 in the present value of annuity benefits, including net cash surrender and withdrawal values. The maximum amount of protection for each individual, regardless of the number of policies or contracts, is $350,000. Special rules may apply with regard to health benefit plans. "Health benefit plan" is defined in the applicable Iowa law 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. Note: Certain policies and contracts may not be covered or fully covered. If coverage is available, it will be subject to substantial limitations and exclusions. 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. There are also various residency requirements under Iowa law. Benefits provided by a long-term care 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 the long-term rider relates. To learn more about the Association and the protections it provides, as well as those relating to group contracts or retirement plans, please visit the Association's website at www.ialifega.org, or contact: Iowa Life and Health Insurance Guaranty Association 700 Walnut Street, Suite 1300 Des Moines, IA 50309 (515) 248-5712 Iowa Insurance Division 1963 Bell Avenue, Suite 100 Des Moines, IA 50315 (515) 654-6600 Information about the financial condition of insurers is available from a variety of sources, including financial rating agencies such as AM Best Company, Fitch Ratings Inc., Moody's Investors Service, and S&P Global Ratings. The Association is subject to the supervision of the Commissioner of the Iowa Insurance Division. Persons who desire to file a complaint to allege a violation of the laws governing the Association may contact the Iowa Insurance Division. State law provides that any suit against the Association shall be brought in the Iowa District Court in Polk County, Iowa. Insurance companies and agents are not allowed by Iowa law to use the existence of the Association or its coverage to encourage 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 Iowa law, then Iowa law will control.