Texas Life and Health Insurance

What Texas Life and Health Insurance does

The Texas Life and Health Insurance Guaranty Association (TLHIGA) is a non-profit legal entity created by the Texas Legislature in 1973 under Texas Insurance Code Chapter 463 to provide limited statutory protection to Texas resident policyholders of life, health, and annuity policies when a member insurance company is found insolvent and ordered liquidated by a court. Its core service is policyholder protection, delivered through three mechanisms: continuing the insolvent company's policies and paying claims, transferring policies to a solvent carrier, or coordinating multi-state coverage plans through the National Organization of Life and Health Insurance Guaranty Associations (NOLHGA). Coverage is subject to statutory dollar limits — for example, life insurance death benefits up to $300,000 per life, major medical health benefits up to $500,000, and annuity benefits up to $250,000 per life.

TLHIGA does not develop or operate proprietary technology. It has no public API, no mobile app, no disclosed data products, and no AI/ML capabilities. Its service infrastructure consists of a website (txlifega.org), published annual reports (2021–2025), audio recordings of public board meetings, bilingual (English/Spanish) summary documents attached to eligible policies, and direct policyholder contact during insolvency proceedings. Operational support is provided through nine-member board governance appointed by the Texas Commissioner of Insurance, and the organization maintains compliance with the Texas Open Meetings Act.

The Association's economic model is assessment-based rather than commercial. Membership is automatic and mandatory for the approximately 1,100 insurance companies and HMOs licensed in Texas to sell protected policy types. When an insolvency occurs, the Board determines the servicing cost and bills member companies through assessments; the Association may also recover a portion of costs from the insolvent estate's liquidator. TLHIGA is not an insurance company, does not sell products, and has no disclosed revenue, no parent company, no subsidiaries, and no traditional funding rounds. Since 1973 it has been activated for over 150 insolvency proceedings, with recent activations including Bright HealthCare Insurance Co of Texas and Friday Health Insurance Co (2023) and Bankers Life Insurance Co and Colorado Bankers Life Insurance Co (2024).

Name

Texas Life and Health Insurance

Legal name

Texas Life and Health Insurance Guaranty Association

Website

https://txlifega.org

Company type

Private

Founded year

1973

Operating status

Operating

Short description

Texas Life and Health Insurance Guaranty Association (TLHIGA) is a 1973 non-profit statutory entity that protects Texas resident policyholders of life, health, and annuity policies when member insurers become insolvent, funded by mandatory assessments on approximately 1,100 licensed insurance companies.

Ownership category

akta.pro rank

Product category

Insurance Guaranty Services

NAICS

Health and Welfare Funds (525120), Other Insurance Funds (52519), Pharmacy Benefit Management and Other Third Party Administration of Insurance and Pension Funds (524292)

SIC

Services-Membership Organizations (8600), Life Insurance (6311), Accident & Health Insurance (6321)

akta.pro industry

PRIMARYHLAEALAN

Ancillary Benefits TPA (Dental/Vision/Life/Accident/Critical Illness)

Healthcare & Life Sciences/Health Insurance & Managed Care/Third-Party Administration (TPA) & Administrative Services Only (ASO)

SECONDARYFSAIAFAH

Association & PEO Group Health Plans (AHP/PEO-Sponsored)

Financial & Insurance/Insurance — Life & Health/Group Health Insurance (Employer-Sponsored)

Keywords

• Insurance guaranty association
• Policyholder protection services
• Life insurance coverage
• Health insurance coverage
• Annuity benefits protection

Headquarters

HQ city

Austin

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2C

Offering type

Services

Cost components

Personnel, Operations, Technology or R&D, Marketing or Sales, Others

Revenue model

1. Member Company Assessments: The Association is funded by insurance companies and HMOs licensed to sell life, health, or annuity policies in Texas. These companies are automatically members of the Association as required by law. The Association sends assessments (bills) to member companies to cover the costs of servicing policies from insolvent companies. The Association also may receive funds from the liquidator of an insolvent company based on the coverage the Association has provided to policyholders.

Distribution channels1 record

Marketing channels4 records

Core offering

The Texas Life and Health Insurance Guaranty Association (TLHIGA) is a non-profit legal entity created by the Texas Legislature in 1973 that provides limited statutory protection to Texas residents who own life, health, and annuity policies issued by insurance companies licensed in Texas. The association is activated when a member insurance company becomes insolvent, paying covered claims subject to statutory limits set by the Texas Legislature. The organization is funded by assessments on approximately 1,100 member insurance companies licensed in the state and operates under Texas Insurance Code Chapter 463.

Product overview

The Texas Life and Health Insurance Guaranty Association is a non-profit legal entity, not an insurance company. It does not sell insurance products but provides mandatory guaranty protection to Texas residents holding life, health, and annuity policies with member insurance companies that become insolvent. The core service is policyholder protection through three mechanisms: (1) continuing existing insurance policy coverage and paying claims, (2) transferring policies to financially sound companies, or (3) developing coordinated multi-state coverage plans through NOLHGA. Coverage is subject to statutory dollar limits, with separate limits for life insurance (death benefits up to $300,000, cash surrender $100,000), health insurance (up to $500,000 for major medical), and annuities (up to $250,000 per life). The Association is funded by mandatory membership from approximately 1,100 insurance companies licensed in Texas. Supporting services include annual reports, meeting recordings, summary documents for policyholders, and insolvency cost guidance for member companies.

Differentiator

Problem solved

Functional benefit

Products and services

• Policyholder Protection Services
• Life Insurance Coverage
• Health Insurance Coverage
• Annuity Benefits Protection

Quantifiable outcome

• Coverage provided for life insurance death benefit up to $300,000 per life; cash surrender up to $100,000 per life
• +2 more outcomes

Segments2 records

Ideal customer profiles1 record

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Partnerships

Four partnerships are on record, tiered core and minor.

• National Organization of Life and Health Insurance Guaranty Associations (NOLHGA)coreStrategic or Co-development Partner · 1 January 1983NOLHGA is a voluntary association made up of the life and health guaranty associations of all 50 states and the District of Columbia. Founded in 1983 to help state guaranty associations coordinate their efforts when a life or health insurance company's insolvency affects people in many states. When a company licensed in multiple states is declared insolvent, NOLHGA assembles a task force of guaranty association officials to analyze policies, develop mechanisms to ensure coverage continues, and arrange for covered policies to be transferred to a healthy company.
• Texas Department of Insurance (TDI)coreStrategic or Co-development PartnerThe Texas Department of Insurance regulates the state's insurance industry and appoints the nine members of the Association's Board of Directors. Five directors must be officers or employees of member companies, and four must be public directors independent of the insurance industry. The Association is governed by Texas Insurance Code Chapter 463, which is administered under TDI oversight.
• National Association of Insurance Commissioners (NAIC)minorStrategic or Co-development PartnerNAIC is the organization of insurance regulators from the 50 states, the District of Columbia, and the four U.S. territories. References to guidance published by NAIC and the American Institute of Certified Public Accountants are used for establishing accruals for potential guaranty association assessments.
• Texas Property and Casualty Insurance Guaranty Association (TPCIGA)minorOthersTPCIGA is a separate non-profit, unincorporated association of all Texas licensed property and casualty insurers. Created by the Texas legislature to provide protections to Texas insurance policyholders and claimants when a property and casualty insurance company fails. A related but distinct organization serving a different segment of the insurance market.

Scale indicators3 records

Expansion highlights5 records

Direct peers

• Ohio Life and Health Insurance Guaranty Association: Ohio's life and health insurance guaranty association. A directly comparable state-level peer providing the same statutory backstop and assessment-based funding model.
• California Life and Health Insurance Guarantee Association: California's statutory life and health insurance guaranty association, providing essentially the same backstop function for California residents as TLHIGA does for Texas residents. It is the most directly comparable state-level peer by both mandate and scale.
• Florida Life and Health Insurance Guaranty Association: Florida's life and health guaranty association. Like TLHIGA, it assesses member insurers and provides statutory coverage limits for life, health, and annuity policies held by state residents; a natural geographic and structural peer.
• New York Life and Health Insurance Guarantee Corporation: New York's life and health insurance guaranty corporation, performing the same statutory role of protecting state-resident policyholders when member insurers become insolvent. Directly comparable by structure, funding mechanism, and product scope.
• Pennsylvania Life and Health Insurance Guaranty Association: Pennsylvania's life and health insurance guaranty association, providing the same statutory backstop for life, health, and annuity policies. A directly comparable state-level peer in mandate and operating model.
• Texas Property and Casualty Insurance Guaranty Association (TPCIGA): TPCIGA is TLHIGA's sister organization in Texas, providing the analogous guaranty function for the property and casualty line. It is explicitly identified in the data as a related but distinct state entity, making it a tight structural peer.
• Illinois Life and Health Insurance Guaranty Association: Illinois's statutory life and health insurance guaranty association. Comparable in mandate, assessment-based funding, and board governance structure to TLHIGA.

Broad incumbents

• National Organization of Life and Health Insurance Guaranty Associations (NOLHGA): NOLHGA is the voluntary umbrella body of all state life and health guaranty associations. While not a peer insurer itself, it is TLHIGA's core strategic partner for multi-state insolvency coordination, making it a directly relevant institutional counterpart.
• Texas Department of Insurance (TDI): TDI is the Texas state insurance regulator and appoints all nine members of TLHIGA's Board of Directors under Chapter 463. It is the closest regulatory authority over TLHIGA's operations and statutory mandate.
• National Association of Insurance Commissioners (NAIC): NAIC is the umbrella body of U.S. state insurance regulators. TLHIGA references NAIC guidance in setting accruals for assessments, and the Texas Department of Insurance (which appoints TLHIGA's board) is itself a NAIC member, making NAIC a relevant governance and standards peer.

Market position

Strengths4 records

Weaknesses4 records

Competitive moat4 records

Key risks5 records

Key highlights6 records

Customer concentration

Revenue estimate

Valuation estimate

Number of profiles

Profiles10 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Texas Life and Health Insurance