State RegulationsNC specificDifficulty 3/5
A governmental retirement plan participant and a non-governmental unallocated annuity contract holder both have claims against the North Carolina guaranty association. Under G.S. 58-62-21(d)(3),(4), which limits apply?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Under G.S. 58-62-21(d)(3),(4), a governmental plan participant (such as a 401(k), 403(b), or 457 plan participant) is limited to $300,000 in present value annuity benefits, while any other unallocated annuity contract holder is covered up to $5,000,000, regardless of the number of contracts.
Why the other options are wrong
- A) The two figures are reversed; governmental participants receive the lower limit.
- B) $1,000,000 is the structured settlement limit under G.S. 58-62-21(d)(5), not the unallocated annuity limit.
- C) The two categories carry different limits, so a single $500,000 figure for both is incorrect.
Memory hook
Government plan $300k; other unallocated annuities $5M.