Which of the following is protected under the Brokered Transactions Guaranty Fund?

Which of the following is protected under the Brokered Transactions Guaranty Fund?

• A. Investment brokers
• B. Insured
• C. Insurance agents
• D. Financial advisors

Answer: (B)

The Brokered Transactions Guaranty Fund is designed to provide protections specifically for insured individuals. This fund helps ensure that policyholders are protected in the event of a financial failure or malpractice by brokers involved in the insurance market. Its primary purpose is to safeguard the interests and financial investments of those purchasing insurance products, thus promoting confidence in the market. Individuals acting as financial advisors, investment brokers, or even insurance agents do not fall under the same protective measures as insured individuals do, primarily because their roles and functions differ from those of the end consumers of insurance products. Insured individuals, being the clients or policyholders, are the ones benefiting directly from the provisions of the Guaranty Fund, which is intended to cover losses due to certain defined circumstances in brokered transactions. This clarification reinforces why the insured is protected under this fund while the other roles mentioned do not receive the same form of protection.

The Brokered Transactions Guaranty Fund is designed to provide protections specifically for insured individuals. This fund helps ensure that policyholders are protected in the event of a financial failure or malpractice by brokers involved in the insurance market. Its primary purpose is to safeguard the interests and financial investments of those purchasing insurance products, thus promoting confidence in the market.

Individuals acting as financial advisors, investment brokers, or even insurance agents do not fall under the same protective measures as insured individuals do, primarily because their roles and functions differ from those of the end consumers of insurance products. Insured individuals, being the clients or policyholders, are the ones benefiting directly from the provisions of the Guaranty Fund, which is intended to cover losses due to certain defined circumstances in brokered transactions. This clarification reinforces why the insured is protected under this fund while the other roles mentioned do not receive the same form of protection.