State RegulationsVA specificDifficulty 1/5
Under the protection afforded by the Virginia Life, Accident and Sickness Insurance Guaranty Association when a member insurer becomes insolvent, what is the aggregate cap on guaranty-association protection for an individual, other than the special limit for health benefit plans?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
The Commission-approved VLASIGA Notice of Protection, issued under the guaranty-association framework of Va. Code § 38.2-1700 et seq., caps aggregate protection at $350,000 per individual per insolvency — a Virginia figure deliberately higher than the common level in many states. The $500,000 limit applies only to health benefit plans, which enjoy their own higher ceiling. Candidates should fix the aggregate at $350,000 and keep it distinct from the product-specific caps that sit underneath it.
Why the other options are wrong
- A) $250,000 is the VLASIGA limit for annuities under the Notice of Protection, not the overall aggregate cap.
- B) $500,000 is the cap for health benefit plans — the sole exception to the general aggregate, not the general figure itself.
- D) $100,000 corresponds to cash surrender value and other accident and sickness limits under the Notice of Protection, not the aggregate cap.
Memory hook
Virginia's aggregate is a notch above the rest: $350,000 per person per insolvency.