State RegulationsVA specificDifficulty 1/5
Under the Commission-approved Notice of Protection of the Virginia Life, Accident and Sickness Insurance Guaranty Association, what is the maximum guaranty-association protection for life insurance death benefits?
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
The VLASIGA Notice of Protection — the Commission-approved disclosure document issued under Va. Code § 38.2-1700 et seq. — limits protection for life insurance death benefits to $300,000 per insured life, subject to the overall aggregate cap per individual per insolvency. The other figures in the Notice cover different exposures: annuities, health benefit plans, and cash surrender values each carry their own ceilings. Knowing which cap attaches to which product is the core of the guaranty-association topic.
Why the other options are wrong
- B) $500,000 is the limit for health benefit plans under the Notice of Protection, not for life death benefits.
- C) $250,000 is the limit for annuities, measured as the present value including cash values.
- D) $100,000 is the limit for cash surrender values and certain other accident and sickness coverages, not for death benefits.
Memory hook
Life death benefit: three hundred grand — the Notice's headline life figure.