A Tennessee resident owns an individual life policy, an annuity, and a disability income policy issued by the same insolvent insurer. Under T.C.A. § 56-12-204, what is the general aggregate limit on the guaranty association's total benefits for this person, apart from the higher cap for basic hospital, medical, and major medical coverage?

Why D is correct

T.C.A. § 56-12-204(c) imposes an aggregate cap of $300,000 per life on the guaranty association's benefits, regardless of how many policies or product types the person holds with the failed insurer. The per-product caps for life, annuity, and disability coverage cannot be stacked to exceed that aggregate, with the sole exception that basic hospital, medical, surgical, and major medical coverage carries its own higher ceiling. Multiple contracts with the same insolvent insurer therefore concentrate risk rather than multiply protection.

Why the other options are wrong

• A) $100,000 is an individual product cap for life cash values and health coverage, not the overall limit across all of a person's contracts.
• B) $500,000 is the special cap for basic hospital, medical, surgical, and major medical coverage, which is the exception to the aggregate rule rather than the rule itself.
• C) $250,000 is the annuity present-value cap, a single product figure that cannot describe the total across life, annuity, and disability contracts.

Memory hook

Per-product caps never stack past $300,000 per life — except big medical's $500,000.