Under T.C.A. § 56-12-204, what is the maximum net cash surrender and net cash withdrawal value the Tennessee Life and Health Insurance Guaranty Association protects for the life insurance policies of one person?

Why C is correct

T.C.A. § 56-12-204(c) caps the guaranty association's protection of life insurance net cash surrender and net cash withdrawal values at $100,000 per person, a smaller figure than the $300,000 available for death benefits. The distinction matters in practice: a policyowner who surrenders a policy after an insolvency is protecting access to cash value, and the statute treats that exposure more conservatively than the death benefit obligation the association continues to fund.

Why the other options are wrong

• A) $300,000 is the death benefit cap and the general aggregate cap; the cash surrender and withdrawal figure is deliberately lower.
• B) $250,000 is the cap for the present value of annuity benefits and for structured settlement payees, not for life cash values.
• D) $500,000 is the cap for basic hospital, medical, surgical, and major medical coverage, unrelated to life policy cash values.

Memory hook

Death gets $300,000; walking away with cash gets only $100,000.