An individual owns several nongroup life insurance policies issued by the same insolvent Georgia member insurer. Under Georgia law, the Guaranty Association's total obligation to this owner is limited to:

Why D is correct

Under O.C.G.A. § 33-38-7(a)(12)(D)(ii) and (E), where one owner holds multiple nongroup life policies (and unallocated annuities) from the same member insurer, the association's aggregate obligation is capped at $5 million regardless of the number of policies. This multi-policy rule prevents stacking and gives large owners a known ceiling. It operates alongside the ordinary per-life caps rather than replacing them for single-policy holders.

Why the other options are wrong

• A) The cap does not multiply per policy; the multi-policy owner rule fixes a single ceiling for the owner.
• B) $300,000 is the standard aggregate per-life cap, but an owner of multiple nongroup life policies from the same insurer is subject to the $5 million ceiling instead.
• C) The association never guarantees combined face amounts; its obligations are capped by statute.

Memory hook

Policy hoarders top out at five million.