State RegulationsNC specificDifficulty 3/5
Under G.S. 58-62-21(d)(3) and (4), unallocated annuity protection for a participant in a governmental retirement plan is ___, while protection for any other unallocated annuity contract holder, regardless of the number of contracts, is ___.
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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)(3) and (4), a participant in a governmental retirement plan is protected up to $300,000 in present value annuity benefits, while any other unallocated annuity contract holder is protected up to $5,000,000 regardless of the number of contracts. The $1,000,000 figure is reserved for structured settlements under G.S. 58-62-21(d)(5).
Why the other options are wrong
- A) $1,000,000 is the structured settlement limit, not the limit for other unallocated annuity contract holders.
- C) $500,000 is the health benefit plan limit under G.S. 58-62-21(d)(2a) and does not appear in the unallocated annuity tiers.
- D) Governmental plan participants are capped at $300,000, not $1,000,000.
Memory hook
Government plan $300k; everyone else unallocated gets $5M.