State RegulationsVA specificDifficulty 3/5
A Virginia life insurer is drafting policy language and wants to stay within the prohibited-provisions rules. Which provision may lawfully appear in the policy?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Virginia permits premium-payment terms that require premiums in advance of the coverage period; that is a standard, lawful contract term in the life framework. By contrast, Va. Code § 38.2-3308 bars forfeiture solely for non-repayment of a policy loan, Va. Code §§ 38.2-3104 and 38.2-3316 bar dating that misrepresents the effective date, and no contract language can override the death-proceeds rights the Code grants to beneficiaries. Drafters must fit their language inside these statutory boundaries.
Why the other options are wrong
- A) Va. Code § 38.2-3308 expressly prohibits forfeiting a life policy solely because a policy loan is not repaid.
- C) Dating a policy earlier than the facts warrant is improper under Va. Code §§ 38.2-3104 and 38.2-3316, whatever the sales motive.
- D) Contract language cannot contract away the statutory rights Va. Code grants beneficiaries in the death proceeds; the statute controls.
Memory hook
Premiums in advance: fine. Forfeit over a loan, fake the date, or override the statute: never.