State RegulationsNJ specificDifficulty 1/5
The New Jersey Life and Health Guaranty Association is created and governed under which authority?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
The association is the creature of the Life and Health Guaranty Association Act, N.J.S.A. 17B:32A-1 et seq., which establishes the association, defines member insurers and covered obligations, and sets out its assessment and operation framework under the supervision of the New Jersey Department of Banking and Insurance. Knowing the statutory anchor matters because the act — not federal law, the fraud statute, or the licensing article — controls what the association can do when an insurer fails.
Why the other options are wrong
- A) Guaranty associations are state creations; no federal guaranty statute establishes New Jersey's association.
- B) The fraud statute, N.J.S.A. 17:33A-1 et seq., addresses false statements in insurance matters, not insolvency protection.
- D) The producer licensing article governs who may sell insurance, not the association that protects policyholders after insolvency.
Memory hook
17B:32A is the guaranty chapter — state statute, state safety net.