Under the North Carolina Life and Health Insurance Guaranty Association Act, the maximum protection for health benefits under coverage that qualifies as a health benefit plan is, for any one life:

Why A is correct

Under G.S. 58-62-21(d)(2a), health benefits are protected up to $500,000 for any one life when the coverage qualifies as a health benefit plan, while coverages not defined as health benefit plans are protected up to $300,000. The $1,000,000 figure is the structured-settlement limit and $5,000,000 the non-governmental unallocated annuity limit under G.S. 58-62-21(d)(5) and (d)(4) — each cap belongs to its own benefit category.

Why the other options are wrong

• B: $300,000 is the limit for coverages that are NOT health benefit plans under G.S. 58-62-21(d)(2a); a health benefit plan earns the higher $500,000 cap.
• C: $1,000,000 is the per-payee limit for structured settlement benefits under G.S. 58-62-21(d)(5), not the health benefit plan cap.
• D: $5,000,000 protects non-governmental unallocated annuity contract holders under G.S. 58-62-21(d)(4); it does not apply to individual health benefits.

Memory hook

Health plan $500k; other coverage $300k.