About the Blogger
NSB News Column Name
Financially Sharp
Short Bio
Jim Tharp is a licenced insurance broker who specializes in life and health insurance as well as mutual funds. He is a registered representative with securities and insurance planning through Fortune Financial Services Inc. , 1015 Third Ave., New Brighton, Pa., 15066 -- member NASD -- (774) 846-2488. Tharp is owner of James E. Tharp Insurance Brokers in Cinncinati. He and his wife, Denise, are part-time residents of New Smyrna Beach. He can be reached at jimtharp@nsbnews.net.
State and federal banking protections in place
Posted Thursday, September 25, 2008 - 03:51 am
By JIM THARP
It goes without saying that the financial instability of banks is among the leading news items today. I am sure you all have asked the question “Is my bank FDIC insured?” If it is under the moniker, FDIC, then you're money is backed by the federal government.
Do you know if your life insurance policy, annuity policy or health insurance policy is covered in case of insolvency by the insurance company? I want to let all of you out there know that if you bought a life or health insurance policy or an annuity, you could very well be insured with the Florida Life and Health Insurance Guaranty Association. And that is a good thing.
The association was created in 1979 when the Florida legislature enacted the Florida Life and Health Insurance Guaranty Association Act. It is composed of all insurers licensed to sell direct life insurance, accident and health insurance and certain annuities in the state of Florida . In the event that a member insurer is found to be insolvent and is ordered to be liquidated by a court, the Florida and Life and Health Insurance Guaranty Association Act enables the association to provide protection (up to the limits spelled out) to Florida residents who are holders of life and health insurance policies and certain annuities with the insolvent insurer:
The limits are $300,000.00 for a life insurance death benefit per insured life;
The limits are $100,000.00 for a life insurance cash surrender per insured life;
The limits are $300,000.00 for health insurance claims per insured life;
The limits are $100,000.00 for annuity cash surrender per contract owner;
The limits are $300,000.00 for an annuity in Benefit per contract owner.
The Florida Life and Health Insurance Guaranty Association has a Web site. It is www.flahiga.org . This Web site has a lot of information that may be helpful to you. Of course, you should do your do diligence on purchasing an insurance contract. You want to make sure the insurance company is financially strong before purchasing which lowers the chances of an insurance company going insolvent.