State RegulationsGA specificDifficulty 2/5
A Georgia life insurer is declared insolvent and the Georgia Life and Health Insurance Guaranty Association steps in. With respect to one individual life policy, the association's maximum obligations under O.C.G.A. § 33-38-7(a)(12)(B)(i) are:
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Under O.C.G.A. § 33-38-7(a)(12)(B)(i), the Guaranty Association covers individual life death benefits up to $300,000 per insured life, while net cash surrender and withdrawal values are capped at $100,000. The $100,000 figure limits cash values only — never death benefits — a distinction the Georgia examination tests frequently.
Why the other options are wrong
- A) This reverses the caps — $300,000 applies to death benefits and $100,000 to net cash surrender values.
- B) The $500,000 figure is the health benefit plan limit, and cash surrender values are subject to a $100,000 cap.
- C) The statute sets separate caps for death benefits and cash values rather than a single combined figure.
Memory hook
Life guaranty: 300 for the death benefit, 100 for the cash value.