State annuity protection

Missouri Annuity Guaranty Protection: $250,000 Limit Explained

Under Missouri’s current schedule, qualifying annuity benefits may receive up to $250,000 in present-value protection with respect to one life, including eligible net cash surrender and withdrawal values. A separate $300,000 aggregate and statutory exclusions also apply.

Missouri annuity protection at a glance

Annuity benefit limit
$250,000
The $250,000 limit applies to the present value of covered annuity benefits, including eligible net cash surrender and net cash withdrawal values, subject to statutory exclusions and interest-rate restrictions.
Overall benefit cap
$300,000
Missouri generally caps the benefits listed in §376.717.5(2)(a)-(b) at $300,000 in the aggregate with respect to one life. Qualifying health-benefit-plan benefits may instead be subject to a $500,000 aggregate with respect to one individual. The $300,000 aggregate does not increase the separate $250,000 ordinary annuity limit.
Who provides protection
Missouri Life and Health Insurance Guaranty Association
The Missouri Life and Health Insurance Guaranty Association (MOLHIGA) is a nonprofit legal entity created by statute, funded through assessments of member insurers, and supervised by the Missouri Director of Commerce and Insurance. It may act for an impaired member insurer and has specified duties for an insolvent member insurer.
Insurer requirement
Member insurer
The issuing insurer must qualify as a member insurer under Missouri law, and the policy or contract must otherwise be covered under the Missouri Life and Health Insurance Guaranty Association Act.

How the $250,000 limit works

Under the current schedule, Missouri generally limits covered annuity benefits to $250,000 in present value with respect to one life, including eligible net cash surrender and withdrawal values, subject to statutory exclusions.

Ownership note: Missouri states the ordinary annuity limit with respect to one life. The statutory owner is the person holding legal title under the contract, or through a valid assignment completed under the contract and properly recorded on the member insurer’s books; a mere beneficial interest is not ownership. Unusual owner, annuitant, or joint-owner arrangements may require case-specific review.

Multiple annuity policies or contracts with respect to the same life at the same impaired or insolvent member insurer share Missouri’s $250,000 ordinary annuity limit.

Coverage limits are generally applied separately to each impaired or insolvent member insurer, subject to Missouri’s eligibility and interstate-coordination rules.

Missouri generally caps the benefits listed in §376.717.5(2)(a)-(b) at $300,000 in the aggregate with respect to one life. Qualifying health-benefit-plan benefits may instead be subject to a $500,000 aggregate with respect to one individual. The $300,000 aggregate does not increase the separate $250,000 ordinary annuity limit.

  • A qualifying structured-settlement payee, or the beneficiary or beneficiaries of a deceased payee, may receive up to $250,000 in aggregate present-value annuity benefits, including eligible net cash surrender and withdrawal values, subject to Missouri’s applicable $300,000 aggregate and special residency and coordination rules.

A $300,000 annuity example

Assume a Missouri resident has one eligible fixed annuity with $300,000 of covered present value at a member insurer whose applicable proceeding falls under the post-August 28, 2013 schedule.

Annuity value

$300,000

Potential protection

$250,000

Possible receivership claim

$50,000

On these facts, Missouri applies the $250,000 ordinary annuity limit to the $300,000 of covered present value.

This illustration shows only the statutory guaranty limit and does not estimate the timing or amount of any additional receivership recovery.

Which annuities are covered?

  • Fixed annuity

    Generally covered

    Fixed annuities are generally covered up to Missouri’s current $250,000 present-value annuity limit with respect to one life, subject to eligibility requirements and statutory exclusions.

  • Fixed indexed annuity (FIA)

    Generally covered

    FIAs are generally covered to the extent of qualifying insurer-guaranteed benefits. Certain excess, uncredited, or forfeitable index-linked amounts may be excluded; however, when value is credited less frequently than annually, Missouri calculates the value as though the earlier impairment or insolvency date were the contractual crediting date and treats the resulting amount as credited and nonforfeitable.

  • Multi-year guaranteed annuity (MYGA)

    Generally covered

    MYGAs are generally treated as fixed deferred annuities and are subject to Missouri’s current $250,000 present-value annuity limit and statutory interest-rate restrictions.

  • Variable annuity

    Guaranteed portions may be covered

    Only qualifying insurer-guaranteed benefits may receive protection; investment gains or losses borne by the contract owner through a separate account are generally excluded.

  • Registered index-linked annuity (RILA)

    Contract-specific

    For a RILA, qualifying insurer-guaranteed contractual obligations may be covered, while portions where the contract owner bears market or index risk are generally excluded.

  • Unallocated annuity contract

    Limited situations

    Unallocated annuity contracts are generally excluded; however, an annuity benefit specifically guaranteed to an individual is not treated as unallocated to that extent.

Who may qualify?

  • Residency is determined on the date of entry of the first court order determining the member insurer to be impaired or insolvent.
  • Eligibility depends on the claimant’s role under the covered policy or contract. Ordinary coverage generally follows qualifying owners, certificate holders, or enrollees, while beneficiaries, assignees, payees, and structured-settlement claimants follow the specific rules in §376.717.
  • A nonresident may qualify in limited circumstances when the issuing insurer is Missouri-domiciled, the person’s state of residence has a similar guaranty association, and the person is not eligible for coverage there because the insurer lacked the required license under that state’s guaranty-association law.
  • Missouri’s interstate-coordination rules are designed to provide protection through only one state guaranty association and prevent duplicate coverage for the same obligation.
  • The issuing insurer must qualify as a member insurer under Missouri law, and the policy or contract must otherwise be covered under the Missouri Life and Health Insurance Guaranty Association Act.

What is not covered?

  • Portions of a policy or contract that are not guaranteed by the member insurer, or under which the policy or contract holder bears the risk, are generally excluded from guaranty protection.
  • Interest, crediting rates, or similar factors above Missouri’s statutory limits based on Moody’s Corporate Bond Yield Average may be excluded from guaranty protection.
  • Investment or market risk borne by the policy or contract holder is generally excluded from MOLHIGA protection.
  • Certain uncredited or forfeitable index-linked amounts may be excluded. If crediting occurs less frequently than annually, Missouri applies the contractual crediting method as though the earlier impairment or insolvency date were the crediting date and treats the resulting value as nonforfeitable.
  • Claims based on marketing materials, unauthorized side letters or riders, misrepresentations, extra-contractual claims, penalties, and consequential or incidental damages are generally excluded from guaranty protection.
  • Reinsurance without an assumption certificate, self-funded or uninsured employer or association plans, and policies issued in Missouri when the insurer lacked authority to issue them are generally excluded.
  • Dividends, experience-rating credits, voting rights, fees and allowances, book-value accounting guarantees, and unallocated annuity contracts are generally excluded.
  • Medicare Part C or D and Medicaid benefits are excluded from Missouri guaranty protection.

What happens after an insurer fails?

  1. A court establishes impairment or insolvency status

    A member insurer becomes impaired when a court places it under rehabilitation or conservation; it becomes insolvent when a court enters a liquidation order with a finding of insolvency. MOLHIGA’s powers and duties differ depending on that status.

  2. MOLHIGA determines claimant, insurer, and contract eligibility

    MOLHIGA determines whether the claimant, issuing insurer, and policy or contract satisfy Missouri’s residency, member-insurer, ownership, coverage, and interstate-coordination requirements.

  3. Covered annuity benefits and applicable limits are determined

    For ordinary annuities under the current schedule, Missouri applies statutory exclusions, then the $250,000 present-value annuity limit, and finally the applicable $300,000 aggregate.

  4. Amounts above guaranty protection may remain in receivership

    Amounts above MOLHIGA’s protection may remain claims against the insurer’s receivership estate, with any additional recovery depending on available estate assets and the receivership process.

How the guaranty system is financed

MOLHIGA is funded primarily through assessments of member insurers when funds are needed to carry out its statutory duties. The Association may also retain reasonable amounts for continuing expenses and future loss claims.

Assessment allocation
Member insurers
Class B assessments are allocated among Missouri’s statutory accounts and among member insurers based generally on covered Missouri premiums during the three most recent calendar years for which information is available preceding the impairment or insolvency year.
Annual assessment cap
Defined by state law
Annual assessment cap — 2%. For each account, total annual assessments against a member insurer generally cannot exceed 2% of its average annual Missouri premiums on covered policies and contracts during the three calendar years preceding the impairment or insolvency year.
Premium-tax treatment
State-specific rule
Tax treatment — 20% per year for five years. A member insurer may offset 20% of a qualifying assessment against Missouri premium-tax liability in each of the five calendar years following the payment year. A member insurer exempt from Chapter 148 may use the corresponding offset against sales or use tax liability.
Historical limit note
The $250,000 annuity schedule applies when the member insurer was first placed under an order of rehabilitation, or under an order of liquidation if no rehabilitation order was entered, on or after August 28, 2013. Earlier proceedings may remain subject to the former $100,000 annuity limit.

What to know before buying

  • The displayed contract value is not automatically the covered amount; guaranty protection depends on the contractual obligation, statutory exclusions, and applicable benefit limits.
  • Missouri prohibits any person, including a member insurer, agent, or affiliate, from using the existence of MOLHIGA for sales, solicitation, or inducement to purchase covered insurance or other coverage. The approved guaranty-association summary document must be delivered before or at policy or contract delivery, and excluded contracts require a separate conspicuous noncoverage notice.

How state protection differs from FDIC insurance

  • What it covers
    State protection: Missouri guaranty protection may apply to eligible insurer-guaranteed contractual annuity benefits, subject to statutory exclusions and dollar limits.
    FDIC: Federal deposit insurance instead concerns qualifying money held at a bank.
  • What system stands behind it
    State protection: MOLHIGA is a nonprofit legal entity created by statute, funded through assessments of member insurers, and supervised by the Missouri Director of Commerce and Insurance.
    FDIC: The FDIC administers a federal insurance system for deposits at participating banks.
  • Coverage-limit basis
    State protection: Under the current schedule, Missouri generally provides up to $250,000 in present-value annuity benefits with respect to one life at an impaired or insolvent member insurer, subject to the applicable aggregate and statutory exclusions.
    FDIC: Bank coverage groups deposits according to institution and ownership capacity.
  • Whether it applies to annuities
    State protection: Eligible annuity benefits may receive Missouri guaranty association protection, but annuity contracts are not bank deposits and are not insured by the FDIC.
    FDIC: An eligible bank deposit—not an annuity contract—uses FDIC insurance.

Sources and last verified

Last verified: September 29, 2026