State RegulationsVA specificDifficulty 1/5
Under Va. Code § 38.2-3533, what must be furnished to each person covered under a Virginia group insurance policy?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Va. Code § 38.2-3533 requires that each individual covered under a group insurance policy receive a certificate of coverage — a document summarizing the policy's principal terms, benefits, and limitations so each covered person knows what protection exists. The master contract remains with the group contract holder, such as the employer. This division is fundamental to group insurance in Virginia: the group holds the contract, while the certificate is the member's evidence and description of the coverage under Virginia law.
Why the other options are wrong
- B) The master contract and underwriting files belong to the group contract holder; individual members receive the certificate, not the entire contract.
- C) Group coverage does not operate by issuing each member a substitute individual policy; the certificate describes the group coverage under Va. Code § 38.2-3533.
- D) Producer compensation is a business matter between the producer and insurer and has no place in the member's certificate rights.
Memory hook
Group policy to the group, certificate to the person.