A New York life insurer is insolvent and in liquidation. For a covered person, what is the maximum aggregate benefit the Life Insurance Company Guaranty Corporation of New York will pay?

Why D is correct

Under N.Y. Ins. Law §7708(a)(2), (c)(2), the guaranty corporation's benefit for one covered person is capped at $500,000 in the aggregate — and, unlike the sub-limit structure used in some other jurisdictions' guaranty regimes, New York imposes no separate lower cap on cash value: the $500,000 aggregate includes it. Agents should know the figure to answer insolvency questions accurately while remembering that they may not use the corporation's existence to sell policies.

Why the other options are wrong

• A) A $100,000 figure resembles the sub-limit structure of other guaranty regimes; New York has no such sub-limit under N.Y. Ins. Law §7708.
• B) A $300,000 figure likewise reflects other jurisdictions' sub-limit approach, not New York's single aggregate cap.
• C) The $1,000,000 ceiling under §7708 applies to unallocated group annuity and funding agreement obligations, not to the per-person life and annuity benefit.

Memory hook

NY guaranty math: $500K per person with cash value included; $1M only for unallocated group annuities.