State RegulationsFL specificDifficulty 1/5
Under Fla. Stat. 631.717(12), the Florida Life & Health Insurance Guaranty Association's per-person limit for death benefits is
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under Fla. Stat. 631.717(12) (Chapter 631 Part III), the guaranty association's per-person aggregate for 'all other benefits' - which includes death benefits, the annuity payout phase, and long-term care - is $300,000. By contrast, life insurance net cash surrender and withdrawal values are capped at $100,000, deferred annuity net cash values at $250,000, and basic hospital, basic medical-surgical, and major medical coverage at $500,000.
Why the other options are wrong
- A) $100,000 is the cap on life insurance net cash surrender and withdrawal values, not death benefits.
- B) $250,000 is the cap on deferred annuity net cash values, a different benefit category.
- D) $500,000 applies to basic hospital, basic medical-surgical, and major medical coverages (not LTC), not death benefits.
Memory hook
Cash values shrink the cap: $100K life cash, $250K annuity cash, $300K everything else, $500K health.