Under Virginia law, how is a 'health services plan' best characterized among the arrangements supervised by the Virginia Bureau of Insurance?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Va. Code § 38.2-4201 supplies the definitional framework for health services plans in Virginia. These are health-benefit arrangements that provide or arrange health care services — hospital, medical, surgical, and similar coverage — for enrolled members, and they are supervised by the Virginia Bureau of Insurance under the Virginia Insurance Code. Recognizing a health services plan as genuine health coverage matters in practice because these plans carry the consumer protections and disclosure duties of the health services plan provisions rather than being exempt marketing or property products.
Why the other options are wrong
- B) Tax-oriented savings accounts are not the health services plan defined at Va. Code § 38.2-4201; they provide no health care services and are not supervised as such.
- C) Repairing storm-damaged clinics is property insurance, a different line entirely from the health services plan provisions of the Virginia Insurance Code.
- D) A physician marketing list confers no health benefits and involves no insurance risk, so it is not a health services plan regulated by the Virginia Bureau of Insurance.
Memory hook
Health services plan = health care provided or paid for — not taxes, roofs, or recruiting lists.