State RegulationsNC specificDifficulty 3/5
Under G.S. 58-62-21(d)(3) and (4), which pairing of unallocated annuity limits is correct in North Carolina?
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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)(3) and (d)(4), a participant in a governmental retirement plan (such as 401(k), 403(b), or 457 plans) is protected up to $300,000 in present value of annuity benefits, while any other unallocated annuity contract holder is protected up to $5,000,000 regardless of the number of contracts. The higher non-governmental figure reflects the large pooled contracts purchased in the commercial annuity market.
Why the other options are wrong
- A) The two tiers are reversed; governmental plan participants get the $300,000 limit.
- B) These figures blend the structured-settlement and health-plan limits into the wrong slots.
- D) A flat $300,000 for everyone ignores the $5,000,000 tier for other unallocated annuity contract holders.
Memory hook
Government gets less, others get millions — 300 for the state, 5M for the rest.