New Jersey Life Producer Law Practice Test

Question: 1 / 400

What is the maximum death benefit amount for which the Guaranty Association is liable in the event of insurer insolvency?

$50,000 per person

$100,000 per person

The Guaranty Association plays a crucial role in protecting policyholders in the event that an insurance company becomes insolvent. In New Jersey, the maximum death benefit amount for which the Guaranty Association is liable is indeed set at $100,000 per person. This means that if a life insurance policyholder has a death benefit that exceeds this amount, the Guaranty Association will cover up to $100,000 of that benefit in the case of the insurer's failure.

Understanding this limit is important for policyholders when considering their coverage amounts, as it directly influences the level of risk they assume if their insurer encounters financial difficulties. It’s also a key aspect of state regulation to ensure consumer protection in the insurance market.

Get further explanation with Examzify DeepDiveBeta

$150,000 per person

$200,000 per person

Next Question

Report this question

Download New Jersey Life Producer Law Practice Test PDF Study Guide
Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy