State annuity protection

New Hampshire Annuity Guaranty Protection: $250,000 Annuity Limit and Special Contract Rules

New Hampshire generally protects up to $250,000 in present-value annuity benefits, including eligible net cash surrender and withdrawal values, with respect to one life at one impaired or insolvent member insurer.

New Hampshire annuity protection at a glance

Annuity benefit limit
$250,000
Present value of covered annuity benefits, including eligible net cash surrender and net cash withdrawal values.
Overall benefit cap
$300,000
New Hampshire generally caps life, annuity, governmental-plan participant, and structured-settlement benefits at $300,000 in the aggregate with respect to one life or individual. Qualifying health-benefit-plan benefits have a separate $500,000 aggregate. The $300,000 aggregate does not increase the separate $250,000 ordinary annuity limit.
Who provides protection
New Hampshire Life and Health Insurance Guaranty Association
The New Hampshire Life and Health Insurance Guaranty Association is a nonprofit legal entity supervised by the insurance commissioner. For an impaired insurer, it may take specified support actions before liquidation; after a liquidation order with a finding of insolvency, it must address covered obligations through the methods authorized by RSA 408-F:8.
Insurer requirement
Member insurer
The issuing insurer or health maintenance organization must qualify as a member insurer under RSA 408-F:4, and the policy or contract must otherwise be covered under RSA 408-F.

How the $250,000 limit works

New Hampshire combines the covered present value of annuity benefits associated with one life at one member insurer, including eligible net cash surrender and withdrawal values, and applies a $250,000 annuity maximum.

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

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

New Hampshire generally caps life, annuity, governmental-plan participant, and structured-settlement benefits at $300,000 in the aggregate with respect to one life or individual. Qualifying health-benefit-plan benefits have a separate $500,000 aggregate. 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, subject to the applicable $300,000 aggregate. Rights acquired through a structured-settlement factoring transaction are excluded.
  • For an eligible participant in a governmental retirement plan established under IRC sections 401, 403(b), or 457 and covered by an unallocated annuity contract, New Hampshire provides up to $250,000 in aggregate present-value annuity benefits, subject to the applicable $300,000 aggregate.
  • For a qualifying contract owner or plan sponsor under New Hampshire’s other covered unallocated-annuity rules, the maximum is $5 million in aggregate, irrespective of the number of contracts.

A $300,000 annuity example

Assume a New Hampshire resident owns an eligible fixed annuity with a covered present value of $300,000 at one impaired or insolvent member insurer and has no other covered benefits affecting the aggregate.

Annuity value

$300,000

Potential protection

$250,000

Possible receivership claim

$50,000

In this example, New Hampshire’s $250,000 annuity-specific limit applies. The separate $300,000 aggregate does not increase that amount.

This illustration shows New Hampshire’s current statutory annuity limit and aggregate only; it does not estimate the timing or amount of any additional receivership recovery or decide a failure outside RSA 408-F’s prospective boundary.

Which annuities are covered?

  • Fixed annuity

    Generally covered

    Fixed annuities are generally covered up to New Hampshire’s $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, New Hampshire 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 New Hampshire’s $250,000 present-value annuity limit and statutory interest-rate restrictions based on Moody’s Corporate Bond Yield Average.

  • Variable annuity

    Guaranteed portions may be covered

    Only qualifying insurer-guaranteed benefits may receive protection; investment gains or losses borne by the contract owner 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 partly covered. An eligible participant in a governmental retirement plan established under IRC sections 401, 403(b), or 457 may receive up to $250,000. Certain other qualifying owners or plan sponsors may receive up to $5 million in aggregate, regardless of the number of contracts. An annuity benefit specifically guaranteed to an individual is not treated as unallocated to that extent.

Who may qualify?

  • Residency is determined on the earlier date of entry of a court order determining the member insurer to be impaired or insolvent.
  • For ordinary annuities, primary coverage generally follows a qualifying owner, certificate holder, or enrollee, while the $250,000 annuity limit is stated with respect to one life. The Association FAQ summarizes ordinary annuity protection per owner per member company, so unusual owner-and-annuitant structures require case-specific review.
  • A nonresident may qualify only with a New Hampshire-domiciled insurer, a comparable association in the person’s state of residence, and a denial there because the insurer or health maintenance organization was missing the authorization required under that state’s guaranty-association law.
  • New Hampshire’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 or health maintenance organization must qualify as a member insurer under RSA 408-F:4, and the policy or contract must otherwise be covered under RSA 408-F.

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 owner bears the investment risk, are generally excluded.
  • Interest, crediting rates, or similar factors above New Hampshire’s statutory limits may be excluded.
  • Certain uncredited or forfeitable index-linked amounts may be excluded. If value is credited less frequently than annually, New Hampshire applies the deemed-crediting-date rule as of the earlier impairment or insolvency date.
  • Reinsurance obligations are generally excluded unless assumption certificates have been issued.
  • Self-funded or uninsured employer, association, and similar benefit plans are generally excluded.
  • Dividends, experience-rating credits, fees, and allowances connected with servicing or administering a policy or contract are generally excluded.
  • Policies or contracts issued in New Hampshire while the insurer lacked authority to issue them are excluded.
  • PBGC-protected unallocated annuity plans and unallocated annuity arrangements not connected with a qualifying natural-person benefit plan or government lottery are excluded.
  • Benefits under Medicare Parts C or D or Medicaid are excluded.
  • Rights acquired through a structured-settlement factoring transaction are excluded, even though a qualifying structured-settlement payee or beneficiary may receive up to $250,000.

What happens after an insurer fails?

  1. Impairment before liquidation

    For an impaired insurer, the Association may guarantee, assume, reissue, or reinsure covered contracts, provide financial support, or lend money. If claims are not being paid timely and the statutory preconditions are met, it may instead provide substitute periodic annuity payments and emergency or hardship withdrawals.

  2. Liquidation with a finding of insolvency

    A member insurer becomes insolvent under RSA 408-F when a court enters a liquidation order with a finding of insolvency. The Association then must address covered obligations through the methods authorized by RSA 408-F:8.

  3. Covered benefits and limits are determined

    The Association identifies the covered contractual obligation, applies exclusions, and then applies the $250,000 ordinary annuity limit and the applicable $300,000 aggregate.

  4. Amounts above guaranty protection

    Amounts above guaranty protection may remain claims in the insurer’s receivership; the receiver and court determine allowance, priority, and any distribution from available estate assets.

How the guaranty system is financed

The Association is funded primarily through assessments of member insurers when funds are needed to carry out its statutory duties.

Assessment allocation
Member insurers
Class A assessments fund administrative, legal, examination, and other general expenses. Class B assessments fund duties relating to impaired or insolvent member insurers and are allocated among accounts and subaccounts based generally on covered New Hampshire premiums.
Annual assessment cap
Defined by state law
For each subaccount of the life insurance and annuity account and for the health account, New Hampshire sets a 2% yearly ceiling. It uses the member insurer’s average annual New Hampshire premiums over the statute’s three-calendar-year covered-business base.
Premium-tax treatment
State-specific rule
For assessments made before September 13, 2026, the former schedule allows a 20% premium-tax credit in each of five years. For assessments made on or after September 13, 2026, Chapter 322 generally allows a 10% credit in each of ten years.
Current chapter, historical boundary, and assessment framework
RSA 408-F does not apply to a member insurer that was insolvent or unable to fulfill its contractual obligations on December 31, 2019. For a covered failure, the statutory limits are measured before taking account of the Association’s subrogation or assignment rights or covered-policy assets. Unallocated-annuity eligibility follows the plan-sponsor and contract-owner rules in RSA 408-F:5; an annuity benefit guaranteed to an individual is not unallocated to that extent.

What to know before buying

  • New Hampshire’s $250,000 ordinary annuity limit is subject to eligibility, contract guarantees, exclusions, and the $300,000 aggregate; it is not a reason to choose one insurer over another.
  • New Hampshire prohibits using the Association’s existence for sales, solicitation, or inducement. RSA 408-F:19 also requires delivery of an approved summary and disclaimer with covered policies or contracts, and a separate written notice when a policy or contract is not covered.

How state protection differs from FDIC insurance

  • What it covers
    State protection: New Hampshire guaranty protection may apply to eligible contractual annuity benefits and to qualifying governmental-plan participant benefits under the limited unallocated-annuity rules.
    FDIC: Annuities are not FDIC-insured; eligible deposits at FDIC-insured banks receive federal deposit insurance.
  • What system stands behind it
    State protection: The New Hampshire Life and Health Insurance Guaranty Association is a nonprofit legal entity created by statute, funded through assessments of member insurers, and supervised by the insurance commissioner.
    FDIC: Federal deposit insurance instead follows qualifying deposit accounts held at participating banks.
  • Coverage-limit basis
    State protection: New Hampshire generally provides up to $250,000 in present-value annuity benefits with respect to one life at one member insurer, subject to the $300,000 aggregate.
    FDIC: The depositor’s ownership category and chosen bank determine federal aggregation.
  • Whether it applies to annuities
    State protection: Eligible annuity benefits may receive New Hampshire guaranty association protection, but annuity contracts are not bank deposits and are not insured by the FDIC.
    FDIC: Only a qualifying bank deposit receives federal coverage.

Sources and last verified

Last verified: September 30, 2026