State RegulationsVA specificDifficulty 2/5
A producer shows a client two Medicare supplement policies from different insurers that carry the same standardized plan designation. How should the client expect the two policies to compare under Virginia rules?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Virginia's standardization provisions, including 14 VAC 5-170-85, ensure that policies with the same standardized designation contain the same core benefits regardless of the issuer. What the client can legitimately shop between the two policies is the premium — insurers file their own rates with the Virginia Bureau of Insurance — along with service and company considerations. Standardization therefore narrows the comparison to price and quality, never benefit content.
Why the other options are wrong
- A) Standardized plans cannot differ substantially in core benefits; that uniformity is the point of the designation.
- B) Standardization does not fix premiums; each insurer files its own rates, which is exactly what consumers compare.
- D) Company size confers no benefit richness under a standardized designation — the required benefits are the same.
Memory hook
Same designation, same benefits — only premium and service can differ.