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State RegulationsGA specificDifficulty 1/5

Excluding the special rule for health benefit plans, what is the general aggregate maximum that the Georgia Life and Health Insurance Guaranty Association must provide for all covered benefits combined for any one 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)(D)(i), the association's aggregate obligation for all benefits under (B) and (C) for any one individual is capped at $300,000 — except that benefits under a health benefit plan are subject to the higher $500,000 per-individual maximum. Even if a person holds several policies with the same insolvent insurer, the combined guaranty protection stays at $300,000 outside the health benefit plan exception.

Why the other options are wrong

  • A) $500,000 applies only to health benefit plans under O.C.G.A. § 33-38-7(a)(12)(D)(i); the stem excludes that exception, so the general aggregate is $300,000.
  • B) $250,000 is the annuity net cash surrender cap under O.C.G.A. § 33-38-7(a)(12)(B)(iii), not the all-benefits aggregate for an individual.
  • D) $5 million is the special cap for one owner of multiple nongroup life policies under O.C.G.A. § 33-38-7(a)(12)(D)(ii),(E); it is not the general per-person aggregate.

Memory hook

One person, one pot: three hundred grand total — only health benefit plans get the half-million bump.

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