DEFINITION of 'National Organization Of Life And Health Insurance Guaranty Associations - NOLHGA'
NOLHGA is a voluntary organization of U.S. life- and health-insurance guaranty associations. Founded in 1983, it covers policyholders when a multistate life- or health-insurance company fails.
BREAKING DOWN 'National Organization Of Life And Health Insurance Guaranty Associations - NOLHGA'
NOLHGA pays policyholders' claims when an insolvent insurance company is unable to. It raises the needed funds from other insurance companies doing business in the states where the failed insurer was doing business. Each insurance company pays a special assessment in proportion to the amount of premiums it collects in that state.