Your supplementary medical insurance policy reimburses specific health expenses, detailed in your policy, that you may incur and that are not covered by government programs. Your supplementary medical insurance policy is a health expense benefit protected under Assuris.
If your life insurance company fails, Assuris will ensure that the coverage under your supplementary medical insurance policy will continue and we will seek to transfer your policy to a solvent company.
$50,000
Original
Benefit Amount
In calculating your Assuris protection, you will retain up to $60,000 or 85% of your supplementary medical insurance benefit, whichever is higher.
Since the amount is less than $60,000, your supplementary medical insurance benefit is fully protected.
$50,000
Adjusted Benefit
$100,000
Original
Benefit Amount
In calculating your Assuris protection, you will retain up to $60,000 or 85% of your supplementary medical insurance benefit, whichever is higher.
Since the amount is more than $60,000, the 85% protection is applied to your supplementary medical insurance benefit.
$85,000
($100,000 × 85%)
Adjusted Benefit
The liquidator, appointed to manage the failed company, will seek to sell the assets and transfer the liabilities with the aim to get the best value for policyholders. This will determine the recovery percentage.
Your benefits will be adjusted to the greater of the Assuris protection or the recovery percentage achieved by the liquidator.
For example, if your health expense is greater than $60,000 and the liquidator recovers 90% of the assets, your policy will be adjusted to 90% instead of Assuris’ guarantee of 85%.
Health expense benefit $100,000
Liquidator Recovery:
$90,000
($100,000 × 90%)
Assuris Protection:
$85,000
($100,000 × 85%)
Since the liquidator’s recovery is more than Assuris’ protection, you will retain $90,000.
Each member company has separate Assuris protection. If you have more than one policy with the same member company, all similar benefits are added together before Assuris’ protection is applied.