State RegulationsNC specificDifficulty 1/5
Under G.S. 58-62-21(d)(2a), what is the North Carolina guaranty association limit for any one life for coverages that ARE defined as health benefit plans?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under G.S. 58-62-21(d)(2a), health benefits of any one life are protected up to $300,000 for coverages not defined as health benefit plans and up to $500,000 for coverages that are health benefit plans. The $5,000,000 figure belongs to unallocated annuity contract holders, and $1,000,000 applies to structured settlements.
Why the other options are wrong
- A) $300,000 is the limit for coverages NOT defined as health benefit plans, and the aggregate life cap including cash values.
- B) $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 limit for other unallocated annuity contract holders under G.S. 58-62-21(d)(4), not for health benefit plans.
Memory hook
Health plans get half a million; everything else health tops out at $300k.