State RegulationsVA specificDifficulty 1/5
Under Va. Code § 38.2-3115.1 and the Virginia rules (14 VAC 5-70-40), an accelerated benefit provision in a life policy pays benefits before death when the insured meets qualifying conditions, such as:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Va. Code § 38.2-3115.1 governs accelerated benefit provisions in life policies, and the Virginia Administrative Code rules at 14 VAC 5-70-40 frame the conditions under which the advance is payable. Payment is keyed to qualifying conditions defined in the policy — most prominently terminal illness, along with other qualifying events the policy specifies — not to financial inconvenience or employer preferences. The rider lets the insured use part of the death benefit while alive when the qualifying condition strikes.
Why the other options are wrong
- B) A cash shortage is not a qualifying condition; accelerated benefits are triggered by the medical or care-related events defined in the policy under Va. Code § 38.2-3115.1.
- C) Enrollment in another health plan is unrelated to the qualifying conditions for accelerated benefits under Va. Code § 38.2-3115.1.
- D) An employer's cost preferences have no bearing on the insured's right to accelerated benefits; the trigger is the insured's qualifying condition.
Memory hook
Accelerated benefits pay early for terminal illness and the policy's other qualifying conditions.