State RegulationsGA specificDifficulty 1/5
For annuity contracts, the Georgia Guaranty Association's obligation is limited to the present value of benefits up to $300,000, and to net cash surrender or withdrawal values up to:
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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)(B)(iii), the annuity limit is $300,000 for the present value of benefits but no more than $250,000 for net cash surrender or withdrawal values. The surrender-value cap is the lower figure, mirroring the life-policy pattern where cash values are protected less generously than the headline benefit. An annuity owner cannot pull out more than a quarter-million in protected cash value.
Why the other options are wrong
- A) $100,000 is the net cash surrender value cap for life insurance under O.C.G.A. § 33-38-7(a)(12)(B)(i), not for annuities.
- B) $300,000 is the present value of benefits limit for annuities; the surrender-value cap is lower.
- D) $500,000 is the health benefit plan limit under O.C.G.A. § 33-38-7(a)(12)(B)(ii).
Memory hook
Annuity cash-out stops at a quarter-million.