State RegulationsNC specificDifficulty 2/5
Under G.S. 58-62-21(d)(2a), what guaranty association limit applies to health benefit plans for any one life in North Carolina?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under G.S. 58-62-21(d)(2a), health benefits are capped at $300,000 for coverages not defined as health benefit plans and $500,000 for health benefit plans. The higher tier reflects the legislature's treatment of comprehensive health benefit plans as distinct coverage.
Why the other options are wrong
- A) $300,000 applies to coverages that are not defined as health benefit plans, the opposite tier from the plan described.
- C) $1,000,000 is the structured settlement limit under G.S. 58-62-21(d)(5), not the health benefit plan limit.
- D) $5,000,000 is the unallocated annuity limit under G.S. 58-62-21(d)(4), not the health benefit plan limit.
Memory hook
Health benefit plans get $500k; other health, $300k.