Health Care: New Jersey Life & Health Insurance Guaranty Association

Specifically, when a member insurer is found to be insolvent and is ordered liquidated, a special deputy receiver takes over the insurer under court supervision and processes the assets and liabilities through liquidation. The task of servicing the insurance company's policies and providing coverage to New Jersey's resident policyholders becomes the responsibility of the guaranty association. The protection provided by the guaranty association is based on New Jersey law and the language of the insolvent company's policies at the time of insolvency.