State RegulationsOH specificDifficulty 1/5
An Ohio life insurer becomes insolvent and its policies are taken over by the Ohio Life and Health Insurance Guaranty Association. What is the maximum the association provides for life insurance death benefits for any one life?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
ORC 3956.04 sets the Ohio Life and Health Insurance Guaranty Association's coverage limit for life insurance death benefits at $300,000 per life. This is the figure exam candidates must associate with death benefits specifically, and it is distinct from the lower cap that applies to a policy's cash values.
Why the other options are wrong
- A) $100,000 is the cap on net cash surrender and net cash withdrawal values for life insurance under ORC 3956.04, not the death-benefit limit.
- C) $250,000 is the limit for the present value of annuity benefits under ORC 3956.04, not for life death benefits.
- D) $500,000 is the limit for health benefit plan coverage under ORC 3956.04, not for life death benefits.
Memory hook
Life death benefit: three hundred grand.