State RegulationsNC specificDifficulty 1/5
A North Carolina resident receives payments under a structured settlement annuity when the member insurer that issued it becomes impaired. Including cash values, what is the Association's maximum protection per payee?
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under G.S. 58-62-21(d)(5), structured settlement benefits are protected up to $1,000,000 per payee, or the payee's beneficiaries, including cash values. This dedicated limit recognizes that structured settlement payees usually cannot replace the payment stream, so the Association gives them a stand-alone cap distinct from the ordinary life and health limits.
Why the other options are wrong
- A) Three hundred thousand dollars is the aggregate life insurance cap and the governmental unallocated annuity cap, not the structured settlement figure.
- B) Five hundred thousand dollars is the health benefit plan limit, which does not apply to structured settlement annuities.
- D) Five million dollars is the limit for other unallocated annuity contract holders, a different category from a structured settlement payee.
Memory hook
Structured payees get a cool million, all to themselves.