State RegulationsFL specificDifficulty 3/5
After a member insurer is liquidated, the Florida Insurance Guaranty Association covers basic hospital, basic medical-surgical, and major medical benefits up to:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under Fla. Stat. 631.717(12), FLAHIGA's per-person aggregate limits include $500,000 for basic hospital, basic medical-surgical, and major medical benefits (excluding long-term care, which falls under the all-other-benefits category), $300,000 for all other benefits such as death benefits and annuity payouts, $250,000 for deferred annuity net cash values, and $100,000 for life net cash surrender and withdrawal values. The Association does not cover penalties or interest.
Why the other options are wrong
- B) $300,000 is the cap for all other benefits, such as death benefits and long-term care, not the hospital and major medical category.
- C) $250,000 is the limit for a deferred annuity's net cash value, not health benefits.
- D) $100,000 is the limit on life net cash surrender and withdrawal values, not hospital and medical coverage.
Memory hook
Health 500; other 300; annuity cash 250; life cash 100.