State RegulationsFL specificDifficulty 1/5
Under Fla. Stat. 631.717(12), the Florida Life & Health Insurance Guaranty Association's per-person limit for the net cash surrender or net cash withdrawal value of life insurance is:
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under Fla. Stat. 631.717(12), the guaranty association's per-life aggregate limits include $100,000 for the net cash surrender or net cash withdrawal value of life insurance; $250,000 for the net cash value of deferred annuities; $300,000 for all other benefits, including death benefits; and $500,000 for basic hospital, basic medical-surgical, and major medical (not long-term care) coverages effective 1/1/2020. The association does not cover penalties or interest, and under Fla. Stat. 631.735 its existence may never be used in sales or solicitation.
Why the other options are wrong
- A) $250,000 is the limit for the net cash value of deferred annuities, not life insurance cash surrender values.
- C) $300,000 is the limit for all other benefits, including death benefits and long-term care.
- D) $500,000 is the limit for basic hospital, basic medical-surgical, and major medical coverages, not life cash surrender values.
Memory hook
Cash surrender tops at $100K; deferred annuity at $250K.