State RegulationsVA specificDifficulty 1/5
In Virginia, what distinguishes a qualified long-term care insurance policy from a nonqualified one?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Virginia's long-term care regulation, 14 VAC 5-200-40, distinguishes qualified long-term care insurance by conformity with the federal tax standards that govern whether premiums may be deductible and benefits may be received tax-free. Virginia's rules incorporate those standards so that a policy labeled qualified in Virginia genuinely meets the federal criteria. Holding a policy for years, buying from a Virginia-chartered insurer, or losing exclusions has nothing to do with qualified status — the test is conformity to the tax-law benefit and trigger standards.
Why the other options are wrong
- B) Passage of time does not qualify a policy; the designation depends on meeting the tax-law standards from inception.
- C) The seller's charter is irrelevant; both domestic and foreign insurers can sell qualified long-term care insurance.
- D) Qualified status relaxes nothing about exclusions; consumer-protection requirements still apply in full.
Memory hook
Qualified = meets the federal tax test that Virginia's rules adopt — not a tenure award.