An insurer goes bankrupt and is unable to pay on any of its insureds' claims. Which of the following will happen?

An insurer goes bankrupt and is unable to pay on any of its insureds' claims. Which of the following will happen?


A. The claims will be paid by a nationally-based program.

B. The claims will be paid by the state Life and Health Guaranty Association.

C. The claims will be paid by the state Department of Insurance.

D. The insureds will not be paid.


Answer: B. The claims will be paid by the state Life and Health Guaranty Association.

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