State RegulationsGA specificDifficulty 2/5
In the insolvency of a Georgia member insurer, which coverage is protected by the Guaranty Association up to $500,000 per individual?
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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)(ii), health benefit plans receive the enhanced $500,000 limit, while disability income, long-term care, and other health insurance are each protected at $300,000. The elevated figure for health benefit plans also raises the per-individual aggregate cap for that coverage. Knowing which category carries the half-million cap is a frequent exam point.
Why the other options are wrong
- A) Disability income insurance is protected at $300,000 under O.C.G.A. § 33-38-7(a)(12)(B)(ii), not $500,000.
- B) Long-term care insurance is protected at $300,000 under O.C.G.A. § 33-38-7(a)(12)(B)(ii).
- D) Life policy net cash surrender values are capped at $100,000 under O.C.G.A. § 33-38-7(a)(12)(B)(i).
Memory hook
Half a million belongs to health benefit plans alone.