State RegulationsNC specificDifficulty 1/5
A member insurer fails, and a policyholder in Greensboro had held several life policies from that insurer. Under G.S. 58-62-21(d), what is the maximum the North Carolina Life and Health Insurance Guaranty Association provides for all benefits, including cash values, for any one life 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), the association's obligation 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 held. North Carolina folds cash values into the $300,000 aggregate rather than creating a separate cash-value sublimit.
Why the other options are wrong
- B) $500,000 is the health-benefit-plan limit under G.S. 58-62-21(d)(2a), not the life-benefits aggregate.
- C) $1,000,000 is the structured-settlement limit under G.S. 58-62-21(d)(5).
- D) No separate $100,000 cash-value sublimit exists in North Carolina; cash values count within the $300,000 aggregate.
Memory hook
One life, $300k total; policies do not stack.