State RegulationsVA specificDifficulty 1/5
A Virginia insurer plans to increase the premium rates charged on its in-force long-term care policies. What does Virginia law require the insurer to do with respect to the affected policyholders?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Va. Code § 38.2-5206.1 requires long-term care insurers to notify affected policyholders of premium rate increases; the duty runs to the individual policyholders whose costs will rise. Filing the increase with the Commission is a separate regulatory step and does not substitute for the policyholder notice. The Virginia Bureau of Insurance enforces the notice requirement.
Why the other options are wrong
- B) A newspaper advertisement does not satisfy the duty of individual notice to each affected policyholder under Va. Code § 38.2-5206.1.
- C) Producers are not the statute's notice target; the duty runs to the policyholders themselves, who may not even be reached through producers.
- D) Filing with the Commission does not replace the policyholder notice; the two requirements are independent.
Memory hook
Raise long-term care rates and you write to the policyholder — an ad will not do.