State RegulationsGA specificDifficulty 1/5
A Georgia member life insurer becomes insolvent. Up to what amount will the Georgia Life and Health Insurance Guaranty Association provide for death benefits under a life insurance policy?
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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)(i), the Guaranty Association's obligation for life insurance death benefits is capped at $300,000, while net cash surrender and withdrawal values are capped separately at $100,000. The two figures are commonly confused: the death benefit limit is the higher one. Coverage comes from assessments on solvent member insurers, not from state tax dollars.
Why the other options are wrong
- A) $100,000 is the cap on net cash surrender or withdrawal values, not on death benefits.
- B) $250,000 is the annuity net cash surrender or withdrawal value cap under O.C.G.A. § 33-38-7(a)(12)(B)(iii).
- D) $500,000 is the cap for health benefit plans under O.C.G.A. § 33-38-7(a)(12)(B)(ii).
Memory hook
Death gets three hundred; living cash gets one hundred.