Life & Health · Chapter 20 · Guaranty Funds
Assessments Against Member Insurers (L&H)
Definition
The Association's funds come from assessments of member insurers by insurance account. The annual assessment on a member may not exceed 1% of the insurer's premiums written in Florida on business covered by the account, received during the previous three (3) years, divided by three. A long-term care insurance assessment for an impaired/insolvent insurer is split 50% to health member insurers and 50% to life and annuity member insurers.
In plain English
Each surviving carrier chips in up to 1% of its three-year average Florida premium — and LTC failures are split half health, half life/annuity.
Exam tip
Keep the caps apart: L&H Association = 1% annual cap (3-year average). FIGA = 2% regular + 2% emergency.
Easy to confuse with
These are what this term gets tested against — if you can't tell them apart cold, drill the contrast.
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