State RegulationsOH specificDifficulty 1/5
An Ohio annuity owner's insurer becomes insolvent. Under the Ohio Life and Health Insurance Guaranty Association's limits, what is the maximum provided for the present value of annuity benefits, including net cash surrender and withdrawal values?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
ORC 3956.04(D)(2)(a)(vi) sets the Guaranty Association's limit for annuities at $250,000 in present value of annuity benefits, including net cash surrender and net cash withdrawal values. Governmental retirement plan participants covered by unallocated annuity contracts share the same $250,000 per-person figure.
Why the other options are wrong
- A) $100,000 is the cap on life insurance net cash surrender and withdrawal values under ORC 3956.04, not the annuity limit.
- B) $300,000 is the life death-benefit figure; annuities carry a $250,000 limit under ORC 3956.04.
- C) $500,000 is the health benefit plan coverage limit under ORC 3956.04, not the annuity limit.
Memory hook
Annuities: a quarter-million present value.