State RegulationsOH specificDifficulty 1/5
An Ohio member life insurer becomes insolvent and the Ohio Life and Health Insurance Guaranty Association steps in. What is the maximum coverage available to a single individual for life insurance death benefits?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under ORC 3956.04(D)(2)(a)(i), the Ohio Life and Health Insurance Guaranty Association covers life insurance death benefits up to $300,000 per individual. This limit applies per insured life, so a policyholder's actual protection may be less than the total death benefit purchased across multiple policies.
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 on death benefits.
- B) $250,000 is the present-value limit for annuity benefits, including net cash surrender and withdrawal values.
- D) $500,000 is the limit for health benefit plan coverage, not for life insurance death benefits.
Memory hook
Life death pays to $300K; cash value stops at $100K.