National Organization of Life and Health Insurance Guaranty Associations (NOLHGA)

Published: | Updated: February 20, 2018

Definition - What does National Organization of Life and Health Insurance Guaranty Associations (NOLHGA) mean?

The National Organization of Life and Health Insurance Guaranty Associations (NOLHGA) is an organization that helps protect insurance policyholders from losing their coverage when insurance companies become insolvent.

Many insurance companies join for the benefits that come with membership in the associaton.

Insuranceopedia explains National Organization of Life and Health Insurance Guaranty Associations (NOLHGA)

If an insurance company becomes insolvent, NOLGHA will pay out the claims that the insurance company needs to pay out. It does so by collecting dues from its membership of insurance companies. These pooled funds are used to bail out insurers who face larges payouts that they cannot afford.

NOLGHA operates like a reinsurance company in a way, since it acts as a failsafe that protects insurance policyholders from filing valid claims that cannot be paid.

Since it provides guarantees, NOLGHA also helps build extra confidence in the insurance market. Both insurers and insurance policyholders benefit from a more confident market.


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