The New Jersey Senate has approved legislation sponsored by Senator Robert Singer (R-30) aimed at increasing the payout figure for annuity products held by insolvent insurance companies.
“Certain annuities offer a safe investment alternative, even when an insurance company fails and goes insolvent. The New Jersey Life and Health Guaranty Association provides a significant safety net that protects investors by securing up to $100,000 for annuities,” stated Sen. Singer. “By raising the payout cap on annuity investments held by insolvent insurance companies to $250,000, this bill will help improve many New Jerseyan’s retirement peace of mind.”
When an insurance company fails, state guaranty associations take over their invested assets in a process known as receivership, allowing certain protected benefits to be paid out to policyholders with life insurance policies and annuities.
Under current law, the New Jersey Life and Health Guaranty Association can pay out up to $100,000 to annuity policyholders. Senator Singer’s bill, S-3371, proposes increasing this cap to $250,000.
To speak with Sen. Singer, please contact Chris Sivel, SRO Deputy Director of Communications at [email protected].
