New Jersey Statutes 17B:32A-5. New Jersey Life and Health Insurance Guaranty Association created
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Terms Used In New Jersey Statutes 17B:32A-5
- Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- State: extends to and includes any State, territory or possession of the United States, the District of Columbia and the Canal Zone. See New Jersey Statutes 1:1-2
5. a. There is created a nonprofit legal entity to be known as the New Jersey Life and Health Insurance Guaranty Association. All member insurers shall be and remain members of the association as a condition of their authority or license to transact insurance, health service corporation business, hospital service corporation business, medical service corporation business, or health maintenance organization business in this State. Any member insurer shall remain a member insurer for four years after it ceases to hold a certificate of authority or license. The association shall perform its functions under the plan of operation established and approved pursuant to section 9 of P.L.1991, c.208 (C. 17B:32A-9) and shall exercise its powers through the board of directors established under section 6 of P.L.1991, c.208 (C. 17B:32A-6). The association shall be under the immediate supervision of the commissioner and shall be subject to the applicable provisions of the insurance laws of this State. Meetings or records of the association may be opened to the public upon majority vote of the board of directors of the association.
b. For purposes of administration and assessment the association shall maintain two accounts:
(1) The life insurance and annuity account which shall include the following subaccounts:
(a) life insurance subaccount;
(b) annuity subaccount; and
(c) unallocated annuity subaccount.
(2) The health account.
L.1991,c.208,s.5; amended 2022, c.98, s.4.