State RegulationsVA specificDifficulty 1/5
Under Virginia insurance licensing law, which of the following is excluded from the definition of a 'business entity'?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Va. Code § 38.2-1800 defines a business entity as a partnership, limited partnership, limited liability company, corporation, or other legal entity other than a sole proprietorship. An individual operating alone is licensed as a natural person, not as a business entity, so the sole proprietorship sits outside the definition. The Virginia Bureau of Insurance licenses legal entities as entities precisely because their ownership and control structures differ from those of individual agents.
Why the other options are wrong
- A) A limited liability company is expressly included in the business-entity definition.
- B) A corporation is one of the named legal entities within the definition.
- D) A limited partnership is expressly listed among the entities covered by the definition.
Memory hook
A sole proprietor is just a person — the business-entity license is for legal entities.