State RegulationsMA specificDifficulty 1/5
What is the maximum guaranty-association protection for an individual annuity contract in Massachusetts, measured as present value including cash surrender and withdrawal values?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
M.G.L. c. 175, § 146B(3)(b)(iii) caps protection for annuities at $250,000 in present value, counting cash surrender and withdrawal values. The Massachusetts Life and Health Insurance Guaranty Association applies this ceiling separately from the life insurance caps in the preceding subsections. An applicant who memorizes only the life figures will miss the annuity limit.
Why the other options are wrong
- A) $300,000 is the life death-benefit cap and the general aggregate cap per life under M.G.L. c. 175, § 146B, not the annuity limit.
- B) $100,000 is the cap on net cash surrender and withdrawal values within the life benefit under M.G.L. c. 175, § 146B(3)(b)(i), not the annuity protection.
- D) $500,000 is the tier for basic hospital, basic medical-surgical, and major medical benefits under M.G.L. c. 175, § 146B(3)(b)(ii).
Memory hook
Annuity protection: a quarter million in present value.