State RegulationsMA specificDifficulty 3/5
After an insurer's insolvency, the Massachusetts Life and Health Insurance Guaranty Association evaluates which claims it must cover. Which of the following receives protection under M.G.L. c. 175, § 146B?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
M.G.L. c. 175, § 146B protects guaranteed individual benefits, including individual annuities up to $250,000 in present value under § 146B(3)(b)(iii). The Massachusetts Life and Health Insurance Guaranty Association's coverage does not extend to non-guaranteed contract values, fraternal benefit certificates, or unallocated group annuities, which the law excludes. Knowing what sits outside the safety net is as important as knowing the caps.
Why the other options are wrong
- A) Non-guaranteed portions of variable contracts are excluded from guaranty-association protection under M.G.L. c. 175, § 146B; only guaranteed values are covered.
- B) Fraternal benefit society certificates are outside the guaranty association's scope under M.G.L. c. 175, § 146B.
- C) Unallocated group annuity contracts are excluded from coverage under M.G.L. c. 175, § 146B; the guaranty association protects guaranteed individual benefits instead.
Memory hook
Guaranty guards guaranteed values — variable, fraternal, and unallocated stay outside.