Originally Posted by Seekinsecurity
Would you mind explaining that please? Thank you.
TO save me some time, YOu can just call me at 877-968-5757 and I will try my best to explain it to you. But you can also call the insurance company and ask them the difference and about do they have "Reserves"
[COLOR=#0000ff]http://www.maine.gov/pfr/insurance/prod ... letter.htm[/COLOR]
My brother Matt wrote this for me and I"m copying and pasting some of what he had to say on it.
"A Life Insurance “Certificate” is also governed by the D.O.I. (Department of Insurance), but is NOT under a Guaranty Association. A Guaranty Fund excludes coverage for “Policies” (Certificates) issued by a charitable organization, a fraternal benefit society, a mandatory state pooling plan, a mutual assessment company, or by an insurance exchange, or a grants and annuities society holding a certificate of authority under Section 11520.
You can usually find in the “Fine Print” of a Certificate that the company holds the right to raise rates of their members to cover claims should they not have the funds to cover said such claims, and in the event the funds can not be raised, said claims will NOT be paid.
Basically, if a person has a “Policy” (issued by Insurance Companies), their policies are guaranteed up to certain amount by their state’s Guaranty Fund. However, if you have a “Certificate” (issued by a charitable organization, a fraternal benefit society, etc.) there is NO guarantee that your policies claim will be paid. Of course, a company selling “Certificates” usually have extra benefits such as scholarship funds, community service projects, and are usually cheap because of the way the keep reserves in Guaranty."
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