Virginia requires certain uniform provisions in every individual accident and sickness policy under Va. Code § 38.2-3503, while Va. Code § 38.2-3504 lists provisions the insurer may include at its option. Which of the following is an optional provision rather than a required one?
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Va. Code § 38.2-3504 catalogs the optional provisions an insurer may choose to include in an individual accident and sickness policy, and the change-of-occupation provision — which adjusts benefits or premiums when the insured moves to a more or less hazardous occupation — is on that list. By contrast, Va. Code § 38.2-3503 makes the grace period, the time limit on certain defenses, and reinstatement uniform required provisions that every policy must contain. Knowing which provisions are mandatory and which are elective is essential because required provisions cannot be omitted no matter how the policy is marketed.
Why the other options are wrong
- A) The grace period is a uniform required provision under Va. Code § 38.2-3503, not an optional one.
- C) The time limit on certain defenses is required in every individual A&H policy under Va. Code § 38.2-3503.
- D) Reinstatement is a required provision under Va. Code § 38.2-3503; insurers cannot choose to leave it out.
Memory hook
Grace, defenses, reinstatement — always required; change of occupation — the insurer's choice.