State RegulationsIL specificDifficulty 1/5
Under the Illinois Life & Health Insurance Guaranty Association Act, what is the maximum coverage for health benefit plan benefits provided to an individual?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
The Illinois Life & Health Insurance Guaranty Association, established under 215 ILCS 5/531.01 through 5/531.19, provides coverage for health benefit plan benefits up to $500,000 per individual, the largest cap on the Illinois protection schedule. This figure exceeds the caps for life death benefits and annuities, reflecting the priority Illinois places on health coverage continuity.
Why the other options are wrong
- A) $100,000 is the cap for life insurance cash surrender and withdrawal values and for other health insurance, not for health benefit plan benefits.
- B) $250,000 is the annuity cap for withdrawal and cash values per annuitant, not the health benefit plan cap.
- D) $5,000,000 applies to unallocated (group) annuity contracts, not to an individual's health benefit plan benefits.
Memory hook
Health gets the half-million: $500,000 is Illinois' health cap.