State RegulationsVA specificDifficulty 2/5
Virginia's policy-loan framework — Va. Code § 38.2-3308 together with § 38.2-3113.3 — is best described as:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Virginia's framework treats the policy loan as a policyholder's right to borrow against the policy's value, with the loan secured by the policy itself. The protective core of the framework is Va. Code § 38.2-3308's prohibition on forfeiture solely for non-repayment, so the loan facility expands access to the policy's value without becoming a trap that destroys coverage. The statutes work as a pair: access plus protection.
Why the other options are wrong
- B) No court approval is part of Virginia's policy-loan framework; borrowing against a policy is a contractual right, not a judicial process.
- C) Virginia imposes no retirement-age bar on policy borrowing; the framework in Va. Code §§ 38.2-3308 and 38.2-3113.3 contains no such cutoff.
- D) The insurer cannot recall the loan and cancel coverage at will; Va. Code § 38.2-3308 forbids forfeiture solely for non-repayment.
Memory hook
Policy loans: borrow against the policy, never forfeit over the loan.