New Jersey Life Producer Practice Exam

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Study for the New Jersey Life Producer Exam. Prepare with flashcards, multiple-choice questions, and detailed explanations. Enhance your readiness and boost your confidence for the exam!

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What is the financial protection limit set by the NJ Life and Health Guaranty Association for individual health insurance policies?

$100,000
$250,000
$500,000
$1,000,000

The correct answer is: $500,000

The New Jersey Life and Health Guaranty Association is designed to provide a safety net for policyholders in the event that an insurance company becomes insolvent. For individual health insurance policies, the association sets a financial protection limit of $500,000. This means that if your insurance carrier fails, you can receive coverage for health insurance benefits up to the specified amount, ensuring that you are not left without protection in a dire situation. This limit is set to help mitigate financial loss and provide peace of mind to consumers who might otherwise be at risk of losing their health coverage entirely due to an insurer's financial troubles. Understanding the protection limits is essential for consumers to adequately assess their risk and ensure their health coverage is secure, especially when selecting insurance policies.