State RegulationsMI specificDifficulty 1/5
Under the Michigan Life and Health Insurance Guaranty Association Act, what is the maximum MLHIGA coverage for an individual life insurance death benefit?
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
M.C.L. 500.7704(6), within the Michigan Life and Health Insurance Guaranty Association Act (M.C.L. 500.7702 to 500.7780), caps MLHIGA protection for life insurance death benefits at $300,000 per insured when a member insurer becomes insolvent. This cap applies per life, so beneficiaries of larger policies receive protection only up to the statutory maximum.
Why the other options are wrong
- A) $100,000 is the MLHIGA cap for the cash surrender value of life policies and for other non-basic health benefits under M.C.L. 500.7704.
- B) $250,000 is the MLHIGA cap for annuity benefits measured by present value including cash values.
- D) $500,000 is the MLHIGA cap for basic hospital, medical, and surgical benefits, not for life insurance death benefits.
Memory hook
Death benefit protection: three hundred grand per insured life.