State RegulationsIL specificDifficulty 1/5
An Illinois life insurer is ordered liquidated. Under the Illinois Life and Health Insurance Guaranty Association framework, what is the maximum protection for an individual's life insurance death benefits?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under 215 ILCS 5/531.01 through 5/531.19 and the Illinois Life and Health Insurance Guaranty Association's official protection schedule, life insurance death benefits are protected up to $300,000 per individual. The guaranty association steps in when a member insurer is ordered liquidated, paying covered benefits up to that cap.
Why the other options are wrong
- A) $100,000 is the cap for life cash surrender and withdrawal values, not death benefits.
- C) $500,000 is the cap for health benefit plan benefits — the classic Illinois swap with the life death-benefit figure.
- D) $250,000 is the annuity cap per annuitant, not the life death-benefit cap.
Memory hook
Life death 300K, health 500K, annuity 250K — know the trio.