NOLHGA was founded in 1983 to coordinate the efforts of state guaranty associations to provide protection to policyholders when their multi-state life or health insurance company becomes insolvent.
[3] Once the order to liquidate a company that operates in multiple states is handed down, NOLHGA, on behalf of affected member state guaranty associations, assembles a task force of affected guaranty associations to analyze the company’s commitments to policyholders.
In addition, the department provides communications assistance to individual state guaranty associations, the NOLHGA Board of Directors, and handles all media and public information inquiries.
This can include securing and managing legal, actuarial, and/or administrative services; seeking bids and evaluating the financial soundness of potential reinsurers; and determining the most cost-effective and efficient manner to continue policyholders’ coverage.
The department also coordinates the efforts of NOLHGA’s Legal Committee, which addresses issues pertaining to the insolvency process and develops strategies for related lawsuits.