A pension-plan trust that is not a government plan holds an unallocated annuity contract with an insolvent Michigan insurer, and the owner is not a structured-settlement payee. What is the guaranty-association limit for this owner?

Why C is correct

M.C.L. 500.7704 sets a special tier for unallocated annuity contracts: $250,000 per participant for government-plan contracts and for structured-settlement payees, but $5,000,000 for any other unallocated annuity owner. A nongovernment pension trust falls into the other-owner tier, so its coverage is the highest guaranty limit in the Michigan framework. Recognizing which owner category applies is the key analytical step, because the same contract type carries very different limits depending on who owns it.

Why the other options are wrong

• A) $250,000 applies to government-plan participants and structured-settlement payees, not to an other-owner unallocated annuity contract.
• B) $300,000 is the general per-life aggregate cap for basic allocated coverages, not the limit for an other-owner unallocated contract.
• D) $500,000 is the cap for basic hospital, medical, and surgical benefits, not for unallocated annuity contracts.

Memory hook

Other owners of unallocated annuities get 5 million.