West Virginia State Life Insurance Practice Exam

The West Virginia Life and Health Guaranty Association guarantees life insurance death benefits up to what amount?

1. $100,000

2. $250,000

3. $300,000

4. $500,000

The correct answer is: $300,000

The West Virginia Life and Health Guaranty Association guarantees life insurance death benefits up to $300,000. This amount serves as a safety net for policyholders in the event that their life insurance company becomes insolvent. The purpose of the Guaranty Association is to protect consumers by ensuring that they can still receive a portion of their benefits even if their insurer is unable to fulfill its obligations. This guarantee is crucial for maintaining trust and stability in the insurance market, as it helps to reassure policyholders that their investments in life insurance policies are protected up to a specified limit. This limit is set to provide a significant amount of coverage, reflecting both the value of life insurance and the importance of financial security for individuals and their families.