State RegulationsNC specificDifficulty 1/5
Under G.S. 58-62-21(d)(2a), what is the North Carolina Life and Health Insurance Guaranty Association limit for one person's coverage under a health benefit plan issued by a failed member insurer?
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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)(2a), health benefit plans are protected up to $500,000 per life, while coverages not defined as health benefit plans are limited to $300,000. The practical consequence is that the classification of the coverage determines which cap applies, so a producer or claimant must identify whether the product is a health benefit plan before quoting a guaranty figure.
Why the other options are wrong
- A) $300,000 is the limit for coverages that are NOT defined as health benefit plans, the opposite category.
- B) $5,000,000 is the unallocated annuity limit for non-governmental contract holders, unrelated to health benefit plans.
- C) $1,000,000 is the structured settlement limit per payee, not the health benefit plan limit.
Memory hook
Health plans get the half-million shield; everything else gets three hundred.