Every state has a guaranty fund to back up the insurers that do business in their state. If a member insurer becomes insolvent and ordered to liquidate, rehabilitate or forced into conservatorship by a court, the fund will pay out the clients up to a statutory limit of holders of life and health insurance policies.  This includes annuities. In Arkansas the state will cover the contract value up to $300,000 for an annuity.

You can read more about the Arkansas state guaranty fund here: http://www.arlifega.org/

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