State RegulationsGA specificDifficulty 2/5
Under the Georgia Life and Health Insurance Guaranty Association Act, the aggregate cap per individual across covered life insurance, annuity, and structured settlement benefits — excluding health benefit plans — is:
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under O.C.G.A. § 33-38-7(a)(12)(D)(i), the association's aggregate obligation per individual across the benefit caps in subsections (B) and (C) is $300,000, except that the aggregate rises to $500,000 per individual for health benefit plans. This means multiple policies with the same insolvent insurer do not stack into unlimited coverage; the per-person ceiling applies across the covered product types.
Why the other options are wrong
- A) $100,000 is the life cash surrender value cap, a per-category limit, not the aggregate per-person ceiling.
- B) $250,000 is the annuity surrender cap, again a category limit rather than the aggregate cap.
- D) $500,000 applies only in the aggregate for health benefit plans, not across life, annuity, and structured settlement benefits.
Memory hook
One person, one pot: 300K across the board — 500K only for health benefit plans.