The rules of the Life and Health Insurance Guaranty Association pertain to which policies?

The rules of the Life and Health Insurance Guaranty Association apply specifically to life and health policies issued by authorized companies. This association is established to protect policyholders in the event that their insurance company becomes insolvent or unable to fulfill its contractual obligations.

The correct understanding is that the Guaranty Association acts as a safety net for policyholders of products like life insurance and health insurance, ensuring that claims can still be paid even if the insurance provider fails. This protection applies to life insurance policies, which can include various types of coverage like term life and whole life, as well as health insurance policies that cover medical expenses, disabilities, and long-term care.

Other options may not encompass the full scope of the association's purpose. For instance, while it might be true that only life or only health policies could be covered individually, the association is specifically geared towards policies that fall under both categories offered by insurers that have obtained proper authorization to operate in the state. Thus, the answer accurately encompasses the breadth of covered policies under the Guaranty Association's protections.