State RegulationsGA specificDifficulty 2/5
A retired teacher in Macon holds an individual annuity issued by a Georgia insurer that later fails. Under O.C.G.A. § 33-38-7(a)(12)(B)(iii), the Guaranty Association's limits for this contract are:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under O.C.G.A. § 33-38-7(a)(12)(B)(iii), the association guarantees the present value of annuity benefits up to $300,000, while net cash surrender and withdrawal values are capped at the lesser figure of $250,000. The present-value limit is always the higher of the two annuity caps.
Why the other options are wrong
- B) This swaps the figures — the present value cap is $300,000 and the net cash surrender value cap is $250,000.
- C) The $100,000 figure is the life policy cash surrender limit and does not apply to annuities.
- D) The $500,000 figure is the health benefit plan maximum, not an annuity figure.
Memory hook
Annuities: 300 promised, 250 in cash.