West Virginia Insurance Laws and Rules Practice Exam

Question: 1 / 400

What is the minimum standard of cash value coverage provided by the Guaranty Association?

$50,000

$100,000

The minimum standard of cash value coverage provided by the Guaranty Association is set at $100,000. This amount reflects the maximum coverage that the Guaranty Association will provide to policyholders in the event of an insurer's insolvency. The purpose of this coverage is to protect policyholders and ensure they receive a portion of their cash surrender value, which is especially important for life insurance products.

This standard is critical because it offers a safety net for consumers, allowing them to recover some of their investments when an insurance company fails, thereby promoting confidence in the insurance market. Understanding this amount is essential for both policyholders and agents, ensuring they can adequately inform clients about their rights and protections under the law.

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$150,000

$250,000

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