State RegulationsNJ specificDifficulty 2/5
For purposes of the New Jersey Life and Health Guaranty Association Act, which of the following is a member insurer?
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
The Guaranty Association Act, N.J.S.A. 17B:32A-1 et seq., defines member insurers as the insurers authorized to write life or health insurance in New Jersey. Membership is a condition of doing business in the state's life and health market: licensed insurers join, pay assessments when called on, and stand behind the policyholder safety net. The New Jersey Department of Banking and Insurance supervises the association and its membership base. Producers, out-of-state insurers without New Jersey licensure, and self-funded plans are not member insurers.
Why the other options are wrong
- B) Membership follows New Jersey licensure to write life or health coverage, not the relocation of individual policyholders.
- C) Producers sell insurance but are not insurers; they are not members of the guaranty association and are never assessed.
- D) Self-funded employer plans are not licensed insurers and sit outside the act's membership and assessment framework.
Memory hook
Licensed to write life or health in New Jersey = member insurer — producers never count.