State annuity protection

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

New Hampshire generally protects up to $250,000 in present-value annuity benefits with respect to one life at one member insurer.

New Hampshire annuity protection at a glance

Annuity benefit limit
$250,000
The governing New Hampshire chapter converts guaranteed annuity obligations and qualifying cash-out rights into one present-value amount.
Overall benefit cap
$300,000
Life, annuity, and related benefits generally share a $300,000 per-life aggregate.
Who provides protection
New Hampshire Life and Health Insurance Guaranty Association
For an impaired insurer, New Hampshire’s Association can use specified discretionary powers before liquidation; after an insolvency and liquidation order, its statutory duties expand.
Insurer requirement
Member insurer
The failed issuer must be a New Hampshire member insurer for the applicable coverage.

How the $250,000 limit works

New Hampshire includes qualifying surrender and withdrawal amounts in present value, then applies a $250,000 annuity maximum to the covered life.

New Hampshire gathers the annuity obligations attached to the covered life before limiting what that insolvent member owes through the association.

Another failed member insurer is tested separately under RSA 408-F.

Life, annuity, and related benefits generally share a $300,000 per-life aggregate.

  • A qualifying structured-settlement payee or beneficiary has a separate $250,000 present-value maximum.
  • For an eligible participant in a governmental retirement arrangement, New Hampshire limits covered unallocated-annuity present value to $250,000.
  • Certain other qualifying unallocated annuity contract owners or plan sponsors can receive up to $5 million per contract.

A $300,000 annuity example

Assume a resident owns one $300,000 covered fixed annuity issued by the insolvent company under current RSA 408-F.

Annuity value

$300,000

Potential protection

$250,000

Possible receivership claim

$50,000

Current chapter treatment applies the unchanged annuity amount before any estate distribution.

The illustration applies current RSA 408-F and does not decide a failure governed by former law.

Which annuities are covered?

  • Fixed annuity

    Generally covered

    A guaranteed fixed annuity can qualify under current RSA 408-F.

  • Fixed indexed annuity (FIA)

    Generally covered

    An FIA can qualify for guaranteed obligations. If the contract posts index value on a cycle longer than one year, the earlier impairment or insolvency date becomes its contractual crediting date for the statutory calculation.

  • Multi-year guaranteed annuity (MYGA)

    Generally covered

    New Hampshire usually treats a MYGA within fixed-deferred annuity coverage, but statutory rate thresholds can remove excess interest.

  • Variable annuity

    Guaranteed portions may be covered

    Variable separate-account risk stays with the owner.

  • Registered index-linked annuity (RILA)

    Contract-specific

    A New Hampshire RILA can qualify only for obligations the insurer contractually guarantees. Market-linked amounts carried by the owner remain outside the guaranty.

  • Unallocated annuity contract

    Limited situations

    Qualifying governmental-plan participation is capped at $250,000 in present value under RSA 408-F; certain other covered unallocated contracts have a separate $5 million maximum.

Who may qualify?

  • New Hampshire fixes residence on the date of the judicial impairment or insolvency determination for the member company.
  • The statute states the ordinary annuity limit with respect to one life. The Association FAQ summarizes ordinary annuity protection per owner per member company, so unusual owner-and-annuitant structures require individual review.
  • A claimant living elsewhere generally needs a New Hampshire-domiciled insurer, a comparable association in the resident state, and a denial there based on the insurer’s missing authorization.
  • The insurer’s New Hampshire domicile becomes relevant only through the chapter’s narrow coordination route for claims crossing state lines.
  • The failed issuer must be a New Hampshire member insurer for the applicable coverage.

What is not covered?

  • New Hampshire excludes contract benefits the insurer did not guarantee and investment risk retained by the owner.
  • Interest above the statute’s specified rate thresholds can be excluded.
  • Rights acquired through a structured-settlement factoring transaction are excluded, even though an ordinary qualifying structured settlement can receive up to $250,000.
  • Claims based only on sales materials, side documents, or misstatements beyond the written contract do not qualify.

What happens after an insurer fails?

  1. 1

    Impairment before liquidation

    RSA 408-F permits specified support for an impaired insurer, including contract support, substitute periodic annuity payments, and hardship withdrawals under statutory conditions.

  2. 2

    Liquidation after insolvency

    After an insolvency and liquidation order, the Association performs the duties New Hampshire law assigns for covered obligations.

  3. 3

    Coverage limits applied

    The Association checks the contract type, guaranteed value, exclusions, and applicable dollar maximums.

  4. 4

    Receivership claim

    A valid unpaid amount above guaranty protection may remain a creditor or policyholder claim, but recovery depends on the failed insurer’s estate.

How the guaranty system is financed

New Hampshire funds the Association through assessments on member insurers.

Assessment allocation
Member insurers
Class A assessments cover administrative and legal costs; Class B assessments fund duties tied to impaired or insolvent insurers.
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
The former schedule allowed a 20%-per-year credit for five years. For assessments made after the new paragraph’s September 13, 2026 effective date, the statute generally allows 10% per year for ten years.
RSA 408-F assessment framework
For an older New Hampshire insolvency, the law in force at the time of the failure may differ from current RSA 408-F; that historical issue does not change the current consumer rules summarized here.

What to know before buying

  • New Hampshire’s $250,000 annuity maximum is only one part of the analysis; ownership structure, contract type, guarantees, and other benefits at the same carrier also matter.
  • RSA 408-F bars sales use of association protection, requires an approved summary for covered policies, and separately requires notice when a policy is not covered.

How state protection differs from FDIC insurance

  • What it covers
    State protection: Current RSA 408-F can protect guaranteed present value in a qualifying annuity.
    FDIC: Federal insurance can protect an eligible balance maintained as a bank deposit.
  • What system stands behind it
    State protection: The New Hampshire Life and Health Insurance Guaranty Association handles the member-insurer response.
    FDIC: The FDIC administers insurance for deposits at participating banking institutions.
  • Coverage-limit basis
    State protection: New Hampshire applies $250,000 for one life and insurer under the governing chapter, plus a $300,000 aggregate.
    FDIC: Federal deposit amounts aggregate according to account ownership at each insured bank.
  • Whether it applies to annuities
    State protection: A New Hampshire annuity may receive RSA 408-F protection; FDIC insurance does not apply to annuities.
    FDIC: An eligible deposit receives federal protection in place of any coverage for the annuity.

Sources and last verified

Last verified: September 17, 2026