State RegulationsVA specificDifficulty 1/5
Under Va. Code § 38.2-107.1 and § 38.2-3113.1, a market value adjusted (modified guaranteed) annuity in Virginia is one whose values:
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Va. Code § 38.2-107.1 and § 38.2-3113.1 permit market value adjusted annuities in Virginia — contracts whose surrender and annuity-date values are adjusted by a formula tied to market conditions, such as changes in interest rates, rather than fixed for all circumstances. The statute conditions their use on disclosure, so the owner must be told before purchase that values can move down as well as up under the contract's formula.
Why the other options are wrong
- A) The Commission does not set surrender values by averaging the market; the values flow from the contract's own market value adjustment formula under Va. Code § 38.2-3113.1.
- C) Charitable organizations issue charitable gift annuities, not market value adjusted annuities; the products are governed by different Virginia provisions.
- D) Missed payments are not the adjustment mechanism; the market-based formula in the contract drives the value changes under Va. Code § 38.2-3113.1.
Memory hook
MVA = market moves your values — up or down, by disclosed formula.