State RegulationsIL specificDifficulty 1/5
What is the Illinois guaranty association limit for the withdrawal and cash values of an individual annuity, expressed as present value, for each annuitant?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
The Illinois Life & Health Insurance Guaranty Association protection schedule, established under 215 ILCS 5/531.01 through 5/531.19, caps annuity withdrawal and cash values at $250,000 in present value per annuitant. The higher $300,000 and $500,000 figures belong to life death benefits and health benefit plan benefits respectively, and the $5,000,000 figure applies only to unallocated group annuities.
Why the other options are wrong
- A) $300,000 is the life insurance death benefit cap, not the individual annuity cap.
- B) $500,000 is the health benefit plan benefit cap, not the annuity cap.
- C) $100,000 is the cap for life cash surrender values and other health insurance, not individual annuity values.
Memory hook
Quarter-million for your annuity: $250,000 per annuitant in Illinois.