State RegulationsVA specificDifficulty 3/5
Which statement about accelerated benefit provisions in Virginia life insurance is correct?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Va. Code § 38.2-3115.1 authorizes accelerated benefit provisions as advances against the death benefit, conditioned on the qualifying events the policy defines, and the Virginia Administrative Code rules at 14 VAC 5-70-40 and 14 VAC 5-70-80 impose the disclosure obligations that accompany the sale. The correct picture combines three elements: it is an advance, it reduces what beneficiaries later receive, and both the qualifying conditions and the disclosures are regulated.
Why the other options are wrong
- A) Disclosure is mandatory; 14 VAC 5-70-80 requires the applicant to be told how accelerated benefits work before the sale.
- B) No state reimbursement program exists for accelerated benefits; the arrangement runs entirely between the insurer and the policy under Va. Code § 38.2-3115.1.
- C) There is no age-65 gate for accelerated benefits; the trigger is the qualifying condition defined in the policy under Va. Code § 38.2-3115.1.
Memory hook
Advance, reduction, disclosure: the three pillars of an accelerated benefit.