New Jersey Life Insurance Exam Practice Question
Funding for the New Jersey Life and Health Guaranty Association is derived from
Correct Answer: B
Rationale: Funding for the New Jersey Life and Health Guaranty Association comes from assessments on member companies. This ensures that the association has the necessary resources to cover claims for policyholders when insurers fail.
Option A is incorrect as the New Jersey Department of Banking does not provide direct funding; rather, it regulates the industry. Option C is misleading; while the General Treasury may support various state functions, it does not fund this specific association. Option D is also incorrect, as special legislative appropriations are not the primary source of funding for the guaranty association.
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