Capital and Surplus Guaranty - New Jersey

Capital and Surplus Guaranty is a legal document that was released by the New Jersey Department of Banking and Insurance - a government authority operating within New Jersey.

FAQ

Q: What is the Capital and Surplus Guaranty in New Jersey?A: The Capital and Surplus Guaranty in New Jersey is a program that provides protection to policyholders in case an insurance company becomes insolvent.

Q: Who is eligible for coverage under the Capital and Surplus Guaranty?A: Policyholders of licensed insurance companies in New Jersey are eligible for coverage under the Capital and Surplus Guaranty.

Q: What types of insurance are covered under the Capital and Surplus Guaranty?A: The Capital and Surplus Guaranty covers various types of insurance, including property, casualty, health, and life insurance.

Q: What is the purpose of the Capital and Surplus Guaranty?A: The purpose of the Capital and Surplus Guaranty is to ensure that policyholders are protected and will receive compensation in case their insurance company becomes insolvent.

Q: How does the Capital and Surplus Guaranty work?A: When an insurance company becomes insolvent, the Capital and Surplus Guaranty steps in to provide coverage for outstanding claims and policy obligations.

Q: Is there a limit to the coverage provided by the Capital and Surplus Guaranty?A: Yes, there are limits to the coverage provided by the Capital and Surplus Guaranty. The specific limits depend on the type of insurance and the policy terms.

Q: Is there a cost to policyholders for the coverage provided by the Capital and Surplus Guaranty?A: No, there is no additional cost to policyholders for the coverage provided by the Capital and Surplus Guaranty. It is funded through assessments made on insurance companies in New Jersey.

Q: Who regulates the Capital and Surplus Guaranty in New Jersey?A: The Capital and Surplus Guaranty is regulated by the Department of Banking and Insurance in New Jersey.