State RegulationsNY specificDifficulty 1/5
Under the New York Life Insurance Company Guaranty Corporation provisions of the New York Insurance Law, what is the maximum aggregate amount the corporation may pay on behalf of one insured life?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under N.Y. Ins. Law §7708(a)(2) and (c)(2), the Life Insurance Company Guaranty Corporation's per-person aggregate limit is $500,000, and that single figure includes cash value because New York imposes no sub-limits dividing the amount between cash value and death benefit. The protection exists for policyowners when a member insurer becomes insolvent, but the total recovery for one life is capped at that amount.
Why the other options are wrong
- A) New York has no $100,000/$300,000 split between cash value and death benefit — those sub-limits do not exist in New York law.
- B) $1,000,000 is the limit for an unallocated group annuity or funding agreement, not the per-person life limit.
- D) The protection is capped — the corporation does not pay unlimited claims for one life.
Memory hook
NY guaranty: $500,000 all-in for one life — one number, no sub-limits.