State RegulationsNC specificDifficulty 2/5
A policyholder in Charlotte holds several individual life policies with cash values from the same insolvent member insurer. Under G.S. 58-62-21, what is the maximum aggregate guaranty association protection for all benefits of any one life, 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 A is correct
Under G.S. 58-62-21(d)(2) and (6), benefits for any one life — including cash values, and regardless of the number of policies — are protected up to the lesser of the contractual obligations or $300,000 in the aggregate. North Carolina folds cash values into the single $300,000 cap; it has no separate cash-value sublimit and no percentage-based payout.
Why the other options are wrong
- B) North Carolina has no separate $100,000 cash-value sublimit; cash values are counted inside the $300,000 aggregate cap.
- C) $500,000 is the guaranty limit for health benefit plans under G.S. 58-62-21(d)(2a), not the aggregate life limit.
- D) $1,000,000 is the structured settlement limit under G.S. 58-62-21(d)(5), not the aggregate life limit.
Memory hook
One life, one $300k bucket — cash values ride inside it.