State RegulationsIL specificDifficulty 1/5
What is the maximum protection the Illinois Life and Health Insurance Guaranty Association provides for an individual annuity's withdrawal and cash values per annuitant?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under 215 ILCS 5/531.01 through 5/531.19 and the association's official protection schedule, individual annuities are protected at $250,000 per annuitant, measured in withdrawal and cash values or present value. The Illinois Department of Insurance consumer FAQ confirms the figure, which applies to allocated individual annuity contracts rather than group unallocated ones.
Why the other options are wrong
- B) $5,000,000 is the cap for unallocated (group) annuity contracts, a different contract category from individual annuities.
- C) $300,000 is the life death-benefit cap and the aggregate cap per insolvency, not the annuity cap.
- D) $100,000 is the cap for life cash surrender values and other health insurance, not annuities.
Memory hook
Individual annuity 250K; group unallocated 5 million.