State RegulationsMA specificDifficulty 2/5
Which of the following is NOT covered by the Massachusetts Life and Health Insurance Guaranty Association?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
M.G.L. c. 175, § 146B and the Massachusetts Life and Health Insurance Guaranty Association's official exclusions list carve out health maintenance organizations, along with hospital and medical service corporations, fraternal benefit certificates, Medicare Part C and Part D coverage, non-guaranteed portions of variable contracts, unallocated group annuities, surplus lines, and government programs. The association exists to back individually issued life, health, and annuity contracts from licensed insurers, so HMO coverage falls entirely outside its protection.
Why the other options are wrong
- A) Disability income is a covered health benefit, protected at $300,000 under M.G.L. c. 175, § 146B(3)(b)(ii).
- C) Individual life death benefits are the core covered exposure, protected at $300,000 per life under M.G.L. c. 175, § 146B(3)(b)(i).
- D) Individual annuity contracts are covered at $250,000 present value under M.G.L. c. 175, § 146B(3)(b)(iii).
Memory hook
HMOs stand outside the guaranty umbrella — only licensed insurer contracts are sheltered.