State RegulationsOH specificDifficulty 1/5
An Ohio resident owns an individual annuity contract issued by a member insurer that later fails. What is the maximum present value of annuity benefits, including net cash surrender and withdrawal values, that the Ohio Life and Health Insurance Guaranty Association covers for that contract owner?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
ORC 3956.04(D)(2)(a)(vi) covers the present value of annuity benefits, including net cash surrender and net cash withdrawal values, up to $250,000 for the contract owner. Structured settlement payees and participants in governmental retirement plans covered by unallocated annuity contracts have their own separate limits under the same statute.
Why the other options are wrong
- A) $100,000 is the cap on net cash surrender and net cash withdrawal values for life insurance, not the annuity benefit limit.
- B) $500,000 is the limit for health benefit plan coverage.
- D) $300,000 is the life insurance death benefit limit and also the general aggregate cap, not the annuity present-value limit.
Memory hook
Annuities ride to $250K present value.