A Virginia small employer's claims experience worsens, and several employees develop significant health conditions. Under the small employer provisions (Va. Code § 38.2-3434 and Va. Code § 38.2-3436), what protection applies at renewal?

Why D is correct

The small employer provisions of the Virginia Insurance Code — Va. Code § 38.2-3434 and Va. Code § 38.2-3436 — build an availability and renewability framework for small employer medical plans: the carrier may adjust premiums under the applicable rating rules, but it may not refuse to renew solely because the group's claims ran high or because enrolled employees became ill. The employer's coverage is thus stable across claim cycles, and the Virginia Bureau of Insurance polices refusals that rest on those forbidden grounds.

Why the other options are wrong

• A) Nonrenewal based solely on claims experience or the health status of enrolled employees is exactly what the renewability protections at Va. Code § 38.2-3436 forbid.
• B) Renewal is regulated under Virginia's small employer provisions; it is not unbounded insurer discretion.
• C) Forcing the employer to reapply with per-employee underwriting would defeat the availability framework of Va. Code § 38.2-3434.

Memory hook

Renewal stands; the price can move, the door stays open.