State RegulationsNC specificDifficulty 2/5
Under G.S. 58-62-21(d)(2a), what limit applies per life to health insurance benefits when the coverage IS defined as a health benefit plan?
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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), guaranty association coverage for health benefits is capped at $300,000 per life for coverages not defined as health benefit plans and at $500,000 per life for coverages that are health benefit plans. The higher tier recognizes the long-tail medical exposure carried by comprehensive health benefit plans.
Why the other options are wrong
- A) $300,000 is the tier for coverages not defined as health benefit plans, and also the life aggregate.
- C) $1,000,000 is the structured-settlement limit under G.S. 58-62-21(d)(5).
- D) $5,000,000 is the limit for other unallocated annuity contract holders under G.S. 58-62-21(d)(4).
Memory hook
Health plans hit half a million.