State RegulationsOH specificDifficulty 1/5
A Dayton resident holds a life insurance policy issued by an insolvent Ohio member insurer and wants to surrender it. Under the Ohio Life and Health Insurance Guaranty Association, what is the maximum coverage for the policy's net cash surrender and net cash withdrawal values?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
ORC 3956.04(D)(2)(a)(i) covers life insurance death benefits up to $300,000, but caps net cash surrender and net cash withdrawal values at $100,000 per individual. A policyholder with substantial accumulated cash value is therefore protected for far less than the death benefit limit suggests.
Why the other options are wrong
- A) $250,000 is the present-value limit for annuity benefits, not the life cash-value cap.
- C) $300,000 is the life insurance death benefit limit, which does not extend to cash surrender or withdrawal values.
- D) $500,000 is the limit for health benefit plan coverage.
Memory hook
Cash value counts for less: $100K.