State RegulationsNC specificDifficulty 1/5
Under G.S. 58-62-21(d), what is the maximum the North Carolina Life and Health Insurance Guaranty Association provides for one life's life insurance benefits, including cash values, regardless of the number of policies?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Under G.S. 58-62-21(d)(2),(6), the Association's limit for any one life is the lesser of the contractual obligations or $300,000 for all benefits including cash values, regardless of the number of policies. North Carolina folds cash values into the single $300,000 aggregate rather than creating a separate cash-value sublimit.
Why the other options are wrong
- A) There is no separate $100,000 cash-value sublimit in North Carolina; cash values are included within the $300,000 aggregate.
- B) $150,000 is not a North Carolina guaranty association limit.
- C) $350,000 is not a North Carolina guaranty association limit.
Memory hook
$300k covers everything — cash values included, no sublimit.