State RegulationsNY specificDifficulty 1/5
When a member insurer is liquidated, the Life Insurance Company Guaranty Corporation of New York protects an individual life insurance policyowner up to:
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under N.Y. Ins. Law §7708(a)(2) and (c)(2), the Life Insurance Company Guaranty Corporation of New York protects each person to an aggregate limit of $500,000, including cash value; New York has no separate sub-limits. By contrast, coverage of unallocated group annuities and funding agreements is protected up to $1,000,000, and group accident and health coverage is unlimited.
Why the other options are wrong
- A) Separate cash-value and death-benefit sub-limits are not part of New York's scheme; the state uses a single aggregate per-person limit that includes cash value.
- C) $1,000,000 is the limit for unallocated group annuities and funding agreements, not the per-person limit for individual life insurance coverage.
- D) $50,000 understates the statutory limit and ignores cash value, which counts within the aggregate.
Memory hook
NY guaranty: $500,000 all-in per person with no sub-limits; $1,000,000 only for unallocated group annuities.