State Guaranty Limits
Annuity coverage by state — what your state guaranty association will and won't cover if a carrier becomes insolvent.
How it works
Every state requires licensed life-and-annuity insurers to belong to that state's guaranty association. If a member insurer becomes insolvent, the association can step in to honor contracts up to a statutory limit. Coverage is determined by the state where you live when the carrier fails — not where you bought the contract.
Most states cover annuity contract values up to $250,000 per owner per insurer. A handful go higher (typically $300,000), and a few cap lower. The number you'll see most often is a "present value" cap — meaning the value of your accumulated balance, not the total of future payouts.
Coverage by state (annuity present value)
The numbers below reflect each state's standard annuity coverage limit per owner per insurer. State laws change; verify with your state's insurance department or the National Organization of Life and Health Insurance Guaranty Associations (NOLHGA) for current rules.
| State | Annuity Limit |
|---|---|
| Alabama | $250,000 |
| Alaska | $250,000 |
| Arizona | $250,000 |
| Arkansas | $300,000 |
| California | $250,000 (80% of present value) |
| Colorado | $250,000 |
| Connecticut | $500,000 |
| Delaware | $250,000 |
| District of Columbia | $300,000 |
| Florida | $250,000 |
| Georgia | $250,000 |
| Hawaii | $250,000 |
| Idaho | $250,000 |
| Illinois | $250,000 |
| Indiana | $250,000 |
| Iowa | $250,000 |
| Kansas | $250,000 |
| Kentucky | $250,000 |
| Louisiana | $250,000 |
| Maine | $250,000 |
| Maryland | $250,000 |
| Massachusetts | $250,000 |
| Michigan | $250,000 |
| Minnesota | $250,000 |
| Mississippi | $250,000 |
| Missouri | $250,000 |
| Montana | $250,000 |
| Nebraska | $250,000 |
| Nevada | $250,000 |
| New Hampshire | $250,000 |
| New Jersey | $500,000 (death benefit) / $100,000 (cash value) |
| New Mexico | $250,000 |
| New York | $500,000 |
| North Carolina | $300,000 |
| North Dakota | $250,000 |
| Ohio | $250,000 |
| Oklahoma | $300,000 |
| Oregon | $250,000 |
| Pennsylvania | $300,000 |
| Rhode Island | $250,000 |
| South Carolina | $300,000 |
| South Dakota | $250,000 |
| Tennessee | $250,000 |
| Texas | $250,000 |
| Utah | $250,000 |
| Vermont | $250,000 |
| Virginia | $250,000 |
| Washington | $500,000 |
| West Virginia | $250,000 |
| Wisconsin | $300,000 |
| Wyoming | $250,000 |
| Puerto Rico | $250,000 |
What the limit covers — and what it doesn't
- Covers: Contract value (cash surrender value) up to the state cap, per owner per insurer
- Doesn't cover: Variable annuity sub-account losses driven by market performance
- Aggregated by insurer: If you have two contracts with the same carrier, the limit applies once across both
- Per owner: Joint owners often each get a separate limit (depends on state)
Why this matters less than you'd think
Insurer insolvency is rare. State insurance departments require strict reserves and capital ratios, and most struggling carriers get acquired or rehabilitated rather than failing outright. The historical record shows fixed annuity contract holders have very rarely lost principal to insolvency.
The real protection is choosing a financially strong carrier in the first place. GetSure only recommends carriers rated A− or better by AM Best — companies with the financial strength to honor their obligations regardless of what the guaranty association would or wouldn't do.