State RegulationsVA specificDifficulty 1/5
Under Virginia's group insurance provisions (Va. Code § 38.2-3521.1), which of the following may constitute an eligible group for group health coverage?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Va. Code § 38.2-3521.1 defines the groups that may properly support group health coverage in Virginia, including employer-employee groups and labor unions, along with other associations that meet the statutory criteria. The common thread is a genuine preexisting relationship or organization — employment, collective bargaining, or a bona fide association. Group insurance is built on those real affiliations, and the Virginia Bureau of Insurance treats coverage sold to a nonqualifying collection as outside the group framework.
Why the other options are wrong
- A) A shared grocery store or similar incidental commonality creates no recognized affiliation under Va. Code § 38.2-3521.1.
- C) One individual is not a group; group coverage requires a statutorily recognized group, not a lone buyer seeking group pricing.
- D) An entity formed solely to purchase insurance lacks the bona fide character Virginia requires of an eligible group.
Memory hook
Real affiliation, real group — shoppers and shell clubs don't qualify.