State RegulationsVA specificDifficulty 1/5
The Virginia Life, Accident and Sickness Insurance Guaranty Association publishes a Commission-approved Notice of Protection that describes the limits it provides when an insurer becomes insolvent. For an insured's health benefit plan — basic hospital, medical, and surgical coverage — what is the maximum protection per individual?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
The Commission-approved VLASIGA Notice of Protection caps guaranty protection for health benefit plans — basic hospital, medical, and surgical coverage — at $500,000 per individual, the highest limit in the schedule. The association operates under Virginia's guaranty-association framework in Chapter 17 (Va. Code § 38.2-1700 et seq.), but the dollar limits themselves come from the Commission-approved Notice, not from a statutory subsection. Health benefit plans receive this elevated cap because medical claims can accumulate quickly during an insolvency.
Why the other options are wrong
- A) $100,000 is the Notice of Protection limit for other accident and sickness coverage that is not a health benefit plan, not for health benefit plans.
- B) $250,000 is the Notice of Protection limit for annuities measured by present value including cash values.
- D) $300,000 is the Notice of Protection limit for life death benefits and for disability income and long-term care coverage, not for health benefit plans.
Memory hook
Health plans top the guaranty table: $500,000 when the insurer folds.