Virginia Code 38.2-1316.7: Rules and regulations.
A. The Commission may adopt rules and regulations implementing the provisions of this article.
Terms Used In Virginia Code 38.2-1316.7
- Annuities: means all agreements to make periodic payments in specified or calculable sums pursuant to the terms of a contract for a stated period of time or for the life of the person or persons specified in the contract. See Virginia Code 38.2-106
- Commission: means the State Corporation Commission. See Virginia Code 38.2-100
- Credit: includes any credit for reinsurance (i) allowed as an admitted asset or as a deduction from liability and (ii) used to compute the valuation reserves required by § Virginia Code 38.2-1316.1
- insurance policies: shall include contracts of fidelity, indemnity, guaranty and suretyship. See Virginia Code 38.2-100
- Insurer: means an insurance company. See Virginia Code 38.2-100
- Life insurance: includes policies that also provide (i) endowment benefits; (ii) additional benefits incidental to a loss in the event of death, dismemberment, or loss by accident or accidental means; (iii) additional benefits to safeguard the contract from lapse or to provide a special surrender value, a special benefit or an annuity, in the event of total and permanent disability of the insured; and (iv) optional modes of settlement of proceeds. See Virginia Code 38.2-102
- NAIC: means the National Association of Insurance Commissioners. See Virginia Code 38.2-1316.1
B. The Commission is further authorized to adopt rules and regulations applicable to reinsurance arrangements described in subdivision 1. A regulation adopted pursuant to:
1. This subsection shall apply only to reinsurance relating to:
a. Life insurance policies with guaranteed nonlevel gross premiums or guaranteed nonlevel benefits;
b. Universal life insurance policies with provisions resulting in the ability of a policyholder to keep a policy in force over a secondary guarantee period;
c. Variable annuities with guaranteed death or living benefits;
d. Long-term care insurance policies; or
e. Such other life and health insurance and annuity products as to which the NAIC adopts model regulatory requirements with respect to credit for reinsurance.
2. Subdivision 1 a or 1 b shall apply to any treaty containing (i) policies issued on or after January 1, 2015, and (ii) policies issued prior to January 1, 2015, if risk pertaining to such pre-2015 policies is ceded in connection with the treaty, in whole or in part, on or after January 1, 2015.
3. This subsection may require the ceding insurer, in calculating the amounts or forms of security required to be held under regulations promulgated under this authority, to use the Valuation Manual adopted by the NAIC under subdivision B 1 of § 38.2-1379, including all amendments adopted by the NAIC and in effect on the date as of which the calculation is made, to the extent applicable.
4. This subsection shall not apply to cessions to an assuming insurer that:
a. Is certified in the Commonwealth;
b. Meets the conditions set forth in subsection E of § 38.2-1316.2; or
c. Maintains at least $250 million in capital and surplus when determined in accordance with the NAIC Accounting Practices and Procedures Manual, including all amendments thereto adopted by the NAIC, excluding the impact of any permitted or prescribed practices, and is (i) licensed in at least 26 states or (ii) licensed in at least 10 states and licensed or accredited in a total of at least 35 states.
C. The authority to adopt regulations pursuant to subsection B does not limit the Commission’s general authority to adopt regulations pursuant to subsection A.