State RegulationsVA specificDifficulty 2/5
Under Virginia's group life insurance framework (Va. Code § 38.2-3318.1), which of the following qualifies as an eligible group for group life coverage?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Va. Code § 38.2-3318.1 identifies the kinds of groups for which group life insurance may be written, and employer-employee groups are the classic eligible group. The unifying principle is that the group must exist for a purpose other than obtaining insurance — employment, association membership, creditor-debtor relations — rather than being assembled just to purchase coverage. Groups formed primarily to buy insurance fail the eligibility test.
Why the other options are wrong
- A) A club created solely to buy insurance lacks the independent purpose the eligibility rule requires; groups may not be formed just to obtain coverage.
- C) Strangers recruited through ads have no common bond or independent purpose; this is exactly the assemblage Virginia's group framework excludes.
- D) A single individual is not a group at all; group coverage presupposes a qualifying collection of persons under Va. Code § 38.2-3318.1.
Memory hook
The group must exist before the insurance — employer yes, insurance-shopping club no.