FLAHIGA is a statutory entity created in 1979 when the Florida legislature enacted the Florida Life and Health Insurance Guaranty Association Act (a link to the Act can be found in the Additional Info section). FLAHIGA 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 Life and Health Insurance Guaranty Association Act (hereafter we will shorten this to "the FLAHIGA Act") enables FLAHIGA to provide protection (up to the limits spelled out in the FLAHIGA Act) to Florida residents who are holders of life and health insurance policies and certain annuities with the insolvent insurer.
Specifically, when a member insurer is found to be insolvent and is ordered liquidated, a receiver takes over the insurer under court supervision and processes the assets and liabilities through liquidation. Upon liquidation, FLAHIGA automatically becomes liable for the policy obligations the liquidated insurer owed to its Florida policyholders. We service the policies, collect premiums and pay valid claims under the policies. Our rights under the policies are those that applied to the insurer prior to liquidation. Our rights may include canceling the policy if the insurer could have done so, but normally we continue the policies until we can transfer them to a new, stable insurer with approval of the State. In any event, we pay all valid claims the insurer would have been liable for. Since the founding of FLAHIGA, we have paid out hundreds of millions in dollars for claims and to provide underlying support for policies.
We will make every effort to ensure that the information provided here is in accordance with the most current law in the event that the Florida legislature amends the FLAHIGA Act or other relevant laws. However, if there should be any inconsistency between the FLAHIGA Act or any other law or regulation and the information on this Web site, the relevant law will supersede. This Web site is designed for general information purposes and should not be relied upon as legal advice.
Be sure to read the FAQs* section of the site for more information, and please refer to the Contact Us section if you have any questions for the guaranty association.
* In the new age of information, FAQs stands for "frequently asked questions." This section is designed to give additional basic background information on FLAHIGA and the guaranty association system nationwide. We think this section will help answer many of the questions you may have about what we do and how we operate.