Virginia Life, Accident, & Sickness Insurance Guaranty Association 8001 Franklin Farms Drive / Suite 235 / Richmond, VA 23229 Home About Us FAQs Receiverships Additional Info Links Terms of Use Contact Us Frequently Asked Questions      What will happen to my insurance coverage if the guaranty association becomes liable for my policy? Protection can be provided in one of several different ways. For example, a financially sound insurer may take over the troubled company's policies and assume the responsibility for continuing coverage and paying covered claims. In this situation, the guaranty association would pay to the assuming company any financial obligation it may have had to a policy owner. The Virginia guaranty association may provide coverage directly by continuing the insurer's policies and collecting any premium payments that may be due. In some situations, the Virginia guaranty association may work with other state guaranty associations to develop an overall plan to provide protection for the failed insurer's policyholders. The amount of protection provided and when you receive it may depend on the particular arrangement worked out for handling the failed insurer's obligations.   NOTE: This information is not intended as legal advice, and no liability is assumed in connection with its use. The applicable state guaranty association statute is the controlling authority, regardless of any information presented on this site. Users should seek advice from a qualified attorney and should not rely on this compilation when considering any questions relating to guaranty association coverage.   [ Back to FAQ list ]