State RegulationsGA specificDifficulty 2/5
A Georgia long-term care insurance rider is attached to a life insurance policy issued by an insurer that later becomes insolvent. For purposes of the Georgia Life and Health Insurance Guaranty Association's coverage limits, how is the long-term care rider treated?
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under O.C.G.A. § 33-38-7(a)(12)(G), a long-term care rider is treated as the same type of benefit as the base policy to which it is attached. The rider does not create a separate stacking guaranty limit and does not automatically convert the coverage into a health benefit plan; the combined benefits are measured against the limit for the base policy's type under the Guaranty Association scheme of O.C.G.A. § 33-38-7.
Why the other options are wrong
- A) The rider is not given an independent, stacked limit; O.C.G.A. § 33-38-7(a)(12)(G) folds it into the same benefit type as the base policy.
- C) Long-term care benefits attached as a rider are covered — O.C.G.A. § 33-38-7(a)(12)(G) expressly brings them within the association's limits rather than excluding them.
- D) The rider does not automatically become a health benefit plan with the elevated cap; under O.C.G.A. § 33-38-7(a)(12)(G) it follows the benefit type of the base policy.
Memory hook
An LTC rider rides along — same bucket, same cap as the base policy.