A nervous prospect hesitates to buy a life policy, so the producer tells him the coverage is guaranteed no matter what happens to the insurer because the state guaranty association stands behind it, and he prints that assurance in his sales flyer. What does Virginia law provide about this pitch?

Why B is correct

Va. Code § 38.2-1715 prohibits a producer from using the existence of the Virginia Life, Accident and Sickness Insurance Guaranty Association in any sales material or as an inducement to purchase insurance. The guaranty association exists as a solvent-insurer-funded backstop administered under the Commission's oversight — it is not a selling point, and dangling it to close a sale misstates both the product and the protection. Producers must sell on the merits of the policy and the insurer, not on the guaranty safety net.

Why the other options are wrong

• A) Reassurance about financial security is precisely what the statute bans when it rests on the guaranty association's existence; the association is not a sales tool.
• C) Printing the caps verbatim does not cure the violation; any use of the association's existence in sales material or as an inducement offends Va. Code § 38.2-1715.
• D) The insurer's ratings have nothing to do with the prohibition; the ban on invoking the guaranty association applies regardless of the carrier's strength.

Memory hook

The guaranty association is a backstop, not a billboard — never use it to make the sale.