Powers and duties of association

The association's liability for insolvent insurers will be no greater than the liability of the insurer if there was no Guarantee Fund available, and the aggregate liability of the association shall not exceed:

• $100,000 in net cash surrender and net cash withdrawal values for life insurance;
• $250,000 in net cash surrender and net cash withdrawal values for deferred annuity contracts; or
• $300,000 for all benefits including cash values, with respect to any one life. In no event shall the association be liable for any penalties or interest.

If a domestic insurer is impaired, the association may guarantee or reinsure any or all of the covered policies of the impaired insurer, and loan money to the impaired insurer if it is approved by the insurer and the OIR.

If a domestic insurer is insolvent, the association shall guarantee, assume, or reinsure the covered policies and provide moneys, notes, guarantees, or other means that are proper and necessary to ensure payment of the contractual obligations of the insolvent insurer with regard to covered persons.

If a foreign or alien insurer is insolvent, the association shall guarantee, assume, or reinsure the covered policies of Florida residents; and provide moneys, notes guarantees, or other means that are proper and necessary to ensure payment of the contractual obligations of the insolvent insurer with regard to covered persons. However, this subsection does not apply when the department has determined that the foreign or alien insurer's home state provides, by statute, protection substantially similar to that provided by this part for the Florida residents.

Assessments against member insurers

Where does the Guarantee Fund get the money to cover impaired and insolvent insurers? The board of directors shall assess the member insurers for each of the accounts at such time and for such amounts as the board finds necessary.

The total of all assessments upon a member insurer will be an average of 1% of premiums received over each the the most recent three calendar years. (The assessment may not in any one calendar year exceed 1% of the sum of the insurer's premiums written in this state received during the three calendar years preceding the year in which the assessment is made, divided by three.)

Powers and duties of department

The Department shall, in any liquidation or rehabilitation proceeding involving a domestic insurer, be appointed as the liquidator or rehabilitator. If a foreign or alien member insurer is subject to a liquidation proceeding in its home state, the department shall be appointed conservator.

The OIR may suspend or revoke the certificate of authority of any member insurer that fails to pay an assessment when due or fails to comply with the approved plan of operation of the association.

Use of membership in advertising

A person may not publish any advertisement that uses the existence of the Insurance Guaranty Association of this state for the purpose of solicitation or inducement to purchase any form of insurance covered by the Florida Life and Health Insurance Guaranty Association Act.