Arkansas Life and Health Insurance Practice Exam 2026 – Complete Study Guide

The Life and Health Insurance Guarantee Association is an organization that protects policyowners and beneficiaries in the event that an insurance company becomes insolvent. In the context of non-residents, this coverage is provided when a domestic insurer (an insurer within the policyholder's home state) becomes insolvent. This association does not typically cover policyholders affected by insolvency of foreign insurers, whether they are residents or non-residents. Therefore, option A is the correct choice as it accurately reflects the role and function of the Life and Health Insurance Guarantee Association.