What organization protects state residents who are policyholders of insolvent insurers?

The New Jersey Life and Health Guaranty Association is the correct choice because it is specifically designed to protect policyholders in the event that a life or health insurance company becomes insolvent. This organization provides a safety net for individuals who have purchased life or health insurance policies, ensuring that they still receive benefits or the return of premiums, up to a certain limit, regardless of the insurer's financial challenges.

This guaranty association operates under state law and aims to bolster consumer confidence in the insurance industry by providing a layer of security for policyholders. It is tailored to address issues that arise in the life and health insurance sectors, distinguishing it from other funds or boards that may handle different types of insurance or operate under varied scopes.

The other options, while relevant to the insurance industry, do not serve the same specific purpose. The Insurance Guarantee Fund may refer to broader protections, but it does not focus exclusively on health and life insurance. The State Insurance Board typically oversees the regulation and licensing of insurers rather than directly providing consumer protections. The Health Insurance Association generally refers to an association of health insurers rather than a consumer-protection entity. Thus, the New Jersey Life and Health Guaranty Association is uniquely positioned to fulfill the role of safeguarding policyholders against insolv