The purpose of the guaranty association is to protect resident policyholders in the event of an insurance company insolvency. Specifically, when a member insurer is found to be insolvent and is ordered liquidated, a special deputy receiver takes over the insurer under court supervision and processes the assets and liabilities through liquidation. The task of servicing the insurance company's policies and providing coverage to North Dakota's resident policyholders becomes the responsibility of the guaranty association. The protection provided by the guaranty association is based on North Dakota law and the language of the insolvent company's policies at the time of insolvency.

The North Dakota Life & Health Insurance Guaranty Association is a statutory entity created in 1983 when the North Dakota legislature enacted the North Dakota Guaranty Association Act. The guaranty association is composed of all insurers licensed to sell life insurance, accident and health insurance, and individual annuities in the state of North Dakota. In the event that a member insurer is found to be insolvent and is ordered to be liquidated by a court, the Guaranty Association Act enables the guaranty association to provide protection to North Dakota residents who are holders of life and health insurance policies and individual annuities with the insolvent insurer.

Access the guaranty association website for more information.