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State RegulationsGA specificDifficulty 3/5

One owner in Georgia holds multiple nongroup life insurance policies, plus an unallocated annuity contract, all issued by the same insolvent insurer. Under the Guaranty Association rules, what is the maximum total obligation for this owner regardless of the number of policies held?

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Answer & full 3-part explanation (select an option above, or peek)

Why A is correct

Under O.C.G.A. § 33-38-7(a)(12)(D)(ii) and (E), when one owner holds multiple nongroup life insurance policies (and unallocated annuity contracts) with the same insolvent insurer, the association's total obligation for all of them is capped at $5 MILLION regardless of the number of policies. The per-policy and per-person limits do not stack without bound; the $5 million owner-level cap controls.

Why the other options are wrong

  • B) $500,000 is the health benefit plan cap under O.C.G.A. § 33-38-7(a)(12)(D)(i); the multi-policy life owner cap is $5 million under (D)(ii),(E).
  • C) $300,000 is the general per-person aggregate under O.C.G.A. § 33-38-7(a)(12)(D)(i), but a single owner of multiple nongroup life policies is subject to the special $5 million cap instead.
  • D) $250,000 is the annuity net cash surrender limit under O.C.G.A. § 33-38-7(a)(12)(B)(iii); it is not the aggregate cap for one owner of multiple life policies.

Memory hook

Policy stacking stops at five million — Georgia caps the whole pile per owner.

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