National Guardian Life Insurance Company (Page 3 of 4) in pdf

NOTICE CONCERNING POLICYHOLDER RIGHTS IN AN INSOLVENCY UNDER THE

MINNESOTA LIFE AND HEALTH INSURANCE GUARANTY ASSOCIATION LAW.

If the insurer who issued your life, annuity or health insurance policy becomes impaired or insolvent you are

entitled to compensation for your policy from the assets of that insurer. The amount you recover will depend on

the financial condition of the insurer.

In addition, residents of Minnesota who purchase life insurance, annuities, or health insurance from insurance

companies authorized to do business in Minnesota are protected, SUBJECT TO LIMITS AND EXCLUSIONS,

in the event the insurer becomes financially impaired or insolvent. This protection is provided by the Minnesota

Life and Health Insurance Guaranty Association.

Minnesota Life & Health Insurance Guaranty Association

4760 White Bear Parkway, Suite 101

White Bear Lake, Minnesota 55110

(651) 407-3149

The maximum amount the guaranty association will pay for all policies issued on one life by the same insurer

is limited to $300.000. Subject to this $300.000 limit, the Guaranty Association will pay up to $300,000 in life

insurance death benefits, $100,000 in net cash surrender and net cash withdrawal values for life insurance,

$300,000 in health insurance benefits, including any net cash surrender and net cash withdrawal values,

$100,000 in annuity net cash surrender and net cash withdrawal values, $300,000 in present value of annuity

benefits for annuities which are part of a structured settlement or for annuities in regard to which periodic

annuity benefits, for a period of not less than the annuitant’s lifetime or for a period certain of not less than ten

years, have begun to be paid on or before the date of impairment or insolvency, or if no coverage limit has been

specified for a covered policy or benefit, the coverage limit shall be $300,000 in present value.

Unallocated annuity contracts issued to retirement plans, other then defined benefit plans, established under

section 401, 403(b), or 457 of the Internal Revenue Code of 1986, as amended through December 31, 1992, are

covered up to $100,000 in net cash surrender and net cash withdrawal values, for Minnesota residents covered

by the plan provided, however, that the association shall not be responsible for more than $7,500,000 in claims

from all Minnesota residents covered by the plan. If the total claims exceed $7,500,000, the $7,500,000 shall be

prorated among all claimants. These are the maximum claim amounts.

Coverage by the guaranty association is also subject to other substantial limitations and exclusions and

requires continued residency in Minnesota. If your claim exceeds the Guaranty Association’s limits you may

still recover a part or all of that amount from the proceeds of the liquidation of the insolvent insurer, if any exist.

Funds to pay claims may not be immediately available. The Guaranty Association assesses insurers licensed to

sell life and health insurance in Minnesota after the insolvency occurs. Claims are paid from this assessment.

(Continued on reverse side)

02GA-MN

National Guardian Life Insurance Company Page 3