The Life and Health Insurance Guaranty Association is?

The Life and Health Insurance Guaranty Association is funded by admitted insurance companies through assessments. This funding mechanism ensures that, in the event that an insurance company becomes insolvent, the association can provide financial protection to policyholders. Admitted insurance companies are those licensed to operate within a specific state and are subject to regulatory oversight, which includes contributing to the guaranty association. This is essential for maintaining public confidence in the insurance market and protecting consumers.

The association does not rely on taxpayer funds, which is why that option is not correct. Instead, its operations are funded by the dues collected from the member insurance companies, thereby creating a safety net for policyholders who might otherwise lose their coverage due to the failure of an insurer. Additionally, the association's protection is not limited to elderly policyholders but extends to all eligible policyholders, making that alternative inaccurate as well. Thus, the correct answer highlights the cooperative nature of the insurance industry in protecting its customers through organized financial contributions.