State RegulationsGA specificDifficulty 2/5
A life insurance policy delivered in Georgia includes a long-term care rider. For purposes of guaranty-association coverage limits, how is the LTC rider's benefit treated?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under O.C.G.A. § 33-38-7(a)(12)(G), a long-term care rider is treated as the same type of benefit as the base policy for guaranty-association purposes. An LTC rider attached to a life policy is therefore handled within the life-benefit limits rather than generating a separate category of guaranty coverage.
Why the other options are wrong
- A) The rider does not create an independent guaranty limit; it shares the classification of the base policy.
- C) An LTC rider does not convert the coverage to annuity treatment; the base policy's type controls.
- D) The rider is not excluded from protection; it is folded into the base policy's benefit type for guaranty purposes.
Memory hook
The rider rides under the base policy's umbrella.