reglab/statecodes huggingface dataset:
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 70 - RULES GOVERNING ACCELERATED BENEFITS PROVISIONS › Section 14VAC5-70-40 - Definitions

Current through Register Vol. 40, No. 24, July 15, 2024
For the purposes of this chapter:
"Accelerated benefits" means benefits payable under a life
				  insurance contract;
1. To a
				policyholder or certificateholder, during the lifetime of the insured, in
				anticipation of death or upon the occurrence of specified life-threatening or
				catastrophic conditions as defined by the policy or rider; and
2. Which reduce the death benefit otherwise
				payable under the life insurance contract; and
3. Which are payable upon the occurrence of a
				single qualifying event which results in the payment of a benefit amount fixed
				at the time of acceleration.
"Commission" means the Virginia State Corporation
				  Commission.
"Qualifying event" means one or more of the following:
1. A medical condition which would result in
				a drastically limited life span as specified in the contract, for example, 24
				months or less;
2. A medical
				condition which has required or requires extraordinary medical intervention,
				such as, but not limited to, major organ transplant or continuous artificial
				life support, without which the insured would die;
3. Any condition which usually requires
				continuous confinement in an eligible institution as defined in the contract if
				the insured is expected to remain there for the rest of his life;
4. A medical condition which would, in the
				absence of extensive or extraordinary medical treatment, result in a
				drastically limited life span. Such conditions may include, but are not limited
				to, one or more of the following:
a. Coronary
				artery disease resulting in an acute infarction or requiring surgery;
b. Permanent neurological deficit resulting
				from cerebral vascular accident;
c.
				End stage renal failure;
d.
				Acquired Immune Deficiency Syndrome; or
e. Other medical conditions which the
				commission shall approve for any particular filing;
5. A condition where a qualified health care
				provider or court of competent jurisdiction has determined that the insured is
				no longer able to perform at least two of the following activities of daily
				living:
a. Bathing;
b. Dressing;
c. Continence;
d. Eating;
e. Toileting; or
f. Transferring;
6. A condition for which a qualified health
				care provider or court of competent jurisdiction has determined that the
				insured requires direct supervision by another person during the majority of
				each day to protect the health and safety of the insured or any other person;
				or
7. Other qualifying events which
				the commission shall approve for any particular filing.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 70 - RULES GOVERNING ACCELERATED BENEFITS PROVISIONS › Section 14VAC5-70-50 - Type of product

Current through Register Vol. 40, No. 24, July 15, 2024
Accelerated benefit riders and life insurance policies with
				  accelerated benefit provisions are primarily mortality risks rather than
				  morbidity risks. They are life insurance benefits subject to Chapter 31 (§
				  38.2-3100 et seq.), Chapter 32 (§ 38.2-3200 et seq.), and Chapter 33
				  (§ 38.2-3300 et seq.) of Title 38.2 of the Code of
				  Virginia.
Statutory Authority
§ 38.2-223 of the Code of Virginia.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 70 - RULES GOVERNING ACCELERATED BENEFITS PROVISIONS › Section 14VAC5-70-60 - Assignee/beneficiary

Current through Register Vol. 40, No. 24, July 15, 2024
Prior to the payment of the accelerated benefit, the insurer
				  is required to obtain from any assignee or irrevocable beneficiary a signed
				  acknowledgement of concurrence for payout. If the insurer making the
				  accelerated benefit is itself the assignee under the policy, no such
				  acknowledgement is required.
Statutory Authority
§ 38.2-223 of the Code of Virginia.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 70 - RULES GOVERNING ACCELERATED BENEFITS PROVISIONS › Section 14VAC5-70-70 - Criteria for payment; lump sum settlement option; restrictions on use of proceeds; accidental death benefit provision

Current through Register Vol. 40, No. 24, July 15, 2024
A. Contract payment options shall include the
				option to take the benefit as a lump sum. The benefit shall not be made
				available as an annuity contingent upon the life of the insured.
B. No restrictions are permitted on the use
				of the proceeds.
C. If any death
				benefit remains after payment of an accelerated benefit, the accidental death
				provision, if any, in the policy or rider shall not be affected by the payment
				of the accelerated benefit.
Statutory Authority
§ 38.2-223 of the Code of Virginia.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 70 - RULES GOVERNING ACCELERATED BENEFITS PROVISIONS › Section 14VAC5-70-80 - Required disclosure provision; descriptive title; tax consequences; solicitations and disclosures; effect of benefit payment

Current through Register Vol. 40, No. 24, July 15, 2024
A. The terminology "accelerated benefit"
				shall be included in the descriptive title. Products regulated under this
				chapter shall not be described or marketed as long-term care insurance or as
				providing long-term care or other type of illness benefits.
B. A disclosure statement is required at the
				time of application for the policy or rider and at the time the accelerated
				benefit payment request is submitted that receipt of these accelerated benefits
				may be taxable and that assistance should be sought from a personal tax
				advisor. The disclosure statement shall be prominently displayed on the first
				page of the policy or rider and any other related documents.
C.
1. A
				written disclosure including, but not necessarily limited to, a brief
				description of the accelerated benefit and definitions of the conditions or
				occurrences triggering payment of the benefits shall be given to the applicant.
				The description shall include an explanation of any effect of the payment of a
				benefit on the policy's cash value, accumulation account, death benefit,
				premium, policy loans and policy liens.
a. In
				the case of agent solicited insurance, the agent shall provide the disclosure
				form to the applicant prior to or concurrently with the application.
				Acknowledgment of the disclosure shall be signed by the applicant and writing
				agent.
b. In the case of a
				solicitation by direct response methods, the insurer shall provide the
				disclosure form to the applicant at the time the policy is delivered, with a
				notice that a full premium refund shall be received if the policy is returned
				to the company within the free look period.
c. In the case of group insurance policies,
				the disclosure form shall be contained as part of the certificate of coverage
				or any related document furnished by the insurer for the individual
				certificateholder.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 70 - RULES GOVERNING ACCELERATED BENEFITS PROVISIONS › Section 14VAC5-70-90 - Effective date of the accelerated benefits

Current through Register Vol. 40, No. 24, July 15, 2024
The accelerated benefit provision shall be effective for
				  accidents on the effective date of the policy or rider. The accelerated benefit
				  provision shall be effective for illness no more than 30 days following the
				  effective date of the policy or rider.
Statutory Authority
§ 38.2-223 of the Code of Virginia.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 70 - RULES GOVERNING ACCELERATED BENEFITS PROVISIONS › Section 14VAC5-70-100 - Waiver of premiums

Current through Register Vol. 40, No. 24, July 15, 2024
The insurer may offer a waiver of premium for the
				  accelerated benefit provision in the absence of a regular waiver of premium
				  provision being in effect. At the time the benefit is claimed, the insurer
				  shall explain any continuing premium requirement to keep the policy in
				  force.
Statutory Authority
§ 38.2-223 of the Code of Virginia.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 70 - RULES GOVERNING ACCELERATED BENEFITS PROVISIONS › Section 14VAC5-70-110 - Discrimination

Current through Register Vol. 40, No. 24, July 15, 2024
Insurers shall not unfairly discriminate among insureds with
				  differing qualifying events covered under the policy or among insureds with
				  similar qualifying events covered under the policy. Insurers shall not apply
				  further conditions on the payment of the accelerated benefits other than those
				  conditions specified in the policy or rider.
Statutory Authority
§ 38.2-223 of the Code of Virginia.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 70 - RULES GOVERNING ACCELERATED BENEFITS PROVISIONS › Section 14VAC5-70-120 - Actuarial standards; financing options; effect on cash value; effect of outstanding policy loans

Current through Register Vol. 40, No. 24, July 15, 2024
A.
1. The insurer may require a premium charge
				or cost of insurance charge for the accelerated benefit. These charges shall be
				based on sound actuarial principles. In the case of group insurance, the
				additional cost may also be reflected in the experience rating.
2. The insurer may pay a present value of the
				face amount. The calculation shall be based on any applicable actuarial
				discount appropriate to the policy design. The interest rate or interest rate
				methodology used in the calculation shall be based on sound actuarial
				principles and disclosed in the contract or actuarial memorandum. The maximum
				interest rate used shall be no greater than the greater of:
a. The current yield on 90 day treasury
				bills; or
b. The current maximum
				statutory adjustable policy loan interest rate.
3. The insurer may accrue an interest charge
				on the amount of the accelerated benefits. The interest rate or interest rate
				methodology used in the calculation shall be based on sound actuarial
				principles and disclosed in the contract or actuarial memorandum. The maximum
				interest rate used shall be no greater than the greater of:
a. The current yield on 90 day treasury
				bills; or
b. The current maximum
				statutory adjustable policy loan interest rate.
The interest rate accrued on the portion of the lien which is
				  equal in amount to the cash value of the contract at the time of the benefit
				  acceleration shall be no more than the policy loan interest rate stated in the
				  contract.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 70 - RULES GOVERNING ACCELERATED BENEFITS PROVISIONS › Section 14VAC5-70-130 - Actuarial disclosure and reserves

Current through Register Vol. 40, No. 24, July 15, 2024
A. A qualified actuary shall be required to
				describe the accelerated benefits, the risks, the expected costs and the
				calculation of statutory reserves in an actuarial memorandum accompanying each
				filing. The insurer shall maintain in its files descriptions of the bases and
				procedures used to calculate benefits payable under these provisions. These
				descriptions shall be made available for examination by the commission upon
				request.
B.
1. When benefits are provided through the
				acceleration of benefits under group or individual life policies or riders to
				such policies, policy reserves shall be determined in accordance with
				§§ 38.2-1365 through 38.2-1385 of the Code of Virginia. All valuation
				assumptions used in constructing the reserves shall be determined as
				appropriate for statutory valuation purposes by a member in good standing of
				the American Academy of Actuaries. Mortality tables and interest currently
				recognized for life insurance reserves by the National Association of Insurance
				Commissioners may be used as well as appropriate assumptions for the other
				provisions incorporated in the policy form. The actuary must follow both
				actuarial standards and certification for good and sufficient reserves.
				Reserves in the aggregate should be sufficient to cover:
a. Policies upon which no claim has yet
				arisen.
b. Policies upon which an
				accelerated claim has arisen.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 70 - RULES GOVERNING ACCELERATED BENEFITS PROVISIONS › Section 14VAC5-70-140 - Filing requirement

Current through Register Vol. 40, No. 24, July 15, 2024
The filing and prior approval of forms containing an
				  accelerated benefit is required.
Statutory Authority
§ 38.2-223 of the Code of Virginia.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 70 - RULES GOVERNING ACCELERATED BENEFITS PROVISIONS › Section 14VAC5-70-150 - Severability

Current through Register Vol. 40, No. 24, July 15, 2024
If any provision of this chapter (14VAC5-70-10 et seq.), or the
				  application thereof to any person or circumstance is for any reason held to be
				  invalid, the remainder of this chapter and the application of such provision to
				  other persons or circumstances shall not be affected thereby.
Statutory Authority
§ 38.2-223 of the Code of Virginia.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 71 - RULES GOVERNING VIATICAL SETTLEMENT PROVIDERS AND VIATICAL SETTLEMENT BROKERS › Section 14VAC5-71-10 - Purpose

Current through Register Vol. 40, No. 24, July 15, 2024
The purpose of this chapter (14VAC5-71) is to implement the
				  Viatical Settlements Act, Chapter 60 (§ 38.2-6000 et seq.) of Title 38.2
				  of the Code of Virginia.
Statutory Authority
§§ 12.1-13 and 38.2-223 of the Code of Virginia.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 71 - RULES GOVERNING VIATICAL SETTLEMENT PROVIDERS AND VIATICAL SETTLEMENT BROKERS › Section 14VAC5-71-40 - License requirements for viatical settlement brokers

Current through Register Vol. 40, No. 24, July 15, 2024
A. No person shall act as a viatical
				settlement broker with a resident of this Commonwealth without first obtaining
				a license from the commission as set forth in § 38.2-1865.1 of the Code of
				Virginia.
B. A viatical settlement
				broker shall submit an application on a form required by the
				commission.
C. The application
				shall be accompanied by a fee of $50. The license may be renewed annually by
				submitting a renewal form and payment of a fee of $50 on or before June 1 of
				each year. Failure to submit a renewal form and fee within the time prescribed
				shall result in an automatic expiration of the license on June 30.
D. The license shall be a limited license
				that allows solicitation only of viatical settlements.
E. Prelicensing examination and continuing
				education required of agents in §§ 38.2-1815, 38.2-1817, and
				38.2-1866 of the Code of Virginia shall not apply to viatical settlement
				brokers.
F. The commission may
				require such additional information as is necessary to determine whether the
				applicant complies with the requirements of § 38.2-1865.1 of the Code of
				Virginia.
Statutory Authority
§§ 12.1-13 and 38.2-223 of the Code of Virginia.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 71 - RULES GOVERNING VIATICAL SETTLEMENT PROVIDERS AND VIATICAL SETTLEMENT BROKERS › Section 14VAC5-71-50 - Other requirements for viatical settlement brokers

Current through Register Vol. 40, No. 24, July 15, 2024
A. In the absence of a written agreement
				making the viatical settlement broker the viator's agent, viatical settlement
				brokers shall be presumed to be agents of viatical settlement
				providers.
B. Viatical settlement
				brokers shall not, without the written agreement of the viator obtained prior
				to performing any services in connection with a viatical settlement, seek or
				obtain any compensation from the viator.
Statutory Authority
§§ 12.1-13 and 38.2-223 of the Code of Virginia.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 71 - RULES GOVERNING VIATICAL SETTLEMENT PROVIDERS AND VIATICAL SETTLEMENT BROKERS › Section 14VAC5-71-60 - Standards for evaluation of reasonable payments

Current through Register Vol. 40, No. 24, July 15, 2024
A. In order to assure that viators receive a
				reasonable settlement for viaticating a life insurance policy, the compensation
				for viaticating a policy shall be no less than the following payouts for
				insureds who are terminally or chronically ill:
Insured's Life Expectancy
Minimum Percentage of Face Value (at time of viatication
						  and withdrawals) Less Outstanding Loans Received by Viator
Less than 6 months
80%
At least 6 but less than 12 months
70%
At least 12 but less than 18 months
65%
At least 18 but less than 25 months
60%
B.
				If the insured's life expectancy is 25 months or more, the compensation for
				viaticating a policy shall be at least the greater of the cash surrender value
				at the time of the transaction or the then available accelerated death benefit
				in the policy.
C. Except where the
				cash surrender value is paid, the percentage may be reduced by 5.0% for
				viaticating a policy written by an insurer rated less than the highest four
				categories by A.M. Best or other comparable rating agencies, based on the most
				recent publication of such rating agencies at the time of
				viatication.
Statutory Authority
§§ 12.1-13 and 38.2-223 of the Code of Virginia.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 71 - RULES GOVERNING VIATICAL SETTLEMENT PROVIDERS AND VIATICAL SETTLEMENT BROKERS › Section 14VAC5-71-70 - Reporting requirements

Current through Register Vol. 40, No. 24, July 15, 2024
A. On
				or before March 1 of each calendar year, each viatical settlement provider
				licensed in this Commonwealth shall file an annual report of all viatical
				settlement transactions where the viator is a resident of this Commonwealth on
				a form containing the following information, for the previous calendar year,
				for each of the viatical settlements contracted during the reporting period:
1. Date of the viatical settlement
				contract;
2. Life expectancy of the
				insured at the time of the contract, in months;
3. Face amount of the policy at the time of
				the contract;
4. Net death benefit
				viaticated;
5. Cash surrender value
				of the policy at time of the contract;
6. Accelerated death benefit available from
				the policy; and
7. Net amount paid
				by the viatical settlement provider to the viator to viaticate the
				policy.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 71 - RULES GOVERNING VIATICAL SETTLEMENT PROVIDERS AND VIATICAL SETTLEMENT BROKERS › Section 14VAC5-71-91 - Advertising

Current through Register Vol. 40, No. 24, July 15, 2024
A. As used in this
				section, "advertising" means any written, electronic or printed communication
				or any communication by means of recorded telephone messages or transmitted on
				radio, television, the Internet or similar communications media, including film
				strips, motion pictures and videos, published, disseminated, circulated or
				placed before the public, directly or indirectly, for the purpose of creating
				an interest in or inducing a person to sell a life insurance policy pursuant to
				a viatical settlement contract.
B.
				Pursuant to § 38.2-6003B of the Code of Virginia, the commission may
				require the submission, by viatical settlement providers, at any time of
				advertising material used or intended for use in this Commonwealth. The Bureau
				of Insurance will provide notification of the requirements, if any, for the
				filing of advertising material by administrative letter. Failure of a person to
				receive or review such notification shall not be cause for exemption or grounds
				for noncompliance with any such requirements.
C. Each viatical settlement provider shall
				establish and at all times maintain a system of control over the method of
				dissemination, content, and form of all advertisements pursuant to each
				viatical settlement contract entered into or effectuated in this Commonwealth.
				All such advertising, regardless of by whom created, designed, or presented,
				shall be the responsibility of the viatical settlement provider. Each viatical
				settlement provider under this chapter shall maintain at its home or principal
				office a complete file containing a specimen copy of every advertisement, as
				described in subsection A of this section, disseminated in this Commonwealth
				with a notation indicating the manner and extent of distribution and a copy of
				the viatical settlement contract referred to in such advertisement. The file
				shall be subject to inspection by the commission. All the advertisements shall
				be maintained in the file until the filing of the next regular report of
				examination of the viatical settlement provider, but no longer than five years
				in accordance with the provisions of Chapter 60 (§ 38.2-6000 et seq.) of
				Title 38.2 of the Code of Virginia. A licensee under this chapter who, after
				notice and hearing, is found to have violated any provision of this chapter or
				a cease and desist order issued by the commission with respect to any provision
				of this chapter shall be punished in accordance with the provisions of Chapter
				5 (§ 38.2-500 et seq.) of Title 38.2 of the Code of Virginia.
Statutory Authority
§§ 12.1-13 and 38.2-223 of the Code of Virginia.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 71 - RULES GOVERNING VIATICAL SETTLEMENT PROVIDERS AND VIATICAL SETTLEMENT BROKERS › Section 14VAC5-71-92 - Prohibited practices

Current through Register Vol. 40, No. 24, July 15, 2024
A. A
				(i) viatical settlement provider or viatical settlement broker or (ii) any
				successor-in-interest to a viatical settlement provider that provides patient
				identifying information to any person or entity shall obtain from that person a
				signed affirmation that the person or entity will not further divulge the
				information without procuring the express, written consent of the insured for
				the disclosure. Notwithstanding the foregoing, if a person or entity referred
				to in clauses (i) and (ii) of this subsection is served with a subpoena and,
				therefore, compelled to produce records containing patient identifying
				information, it shall notify the viator and the insured in writing at their
				last known addresses within five business days after receiving notice of the
				subpoena.
B. A viatical settlement
				broker shall not, without the written agreement of the viator obtained prior to
				performing any services in connection with a viatical settlement, seek or
				obtain any compensation from the viator.
C. A viatical settlement provider or viatical
				settlement broker shall not discriminate in the making or soliciting of
				viatical settlements on the basis of race, age, sex, national origin, creed,
				religion, occupation, marital or family status or sexual orientation, or
				discriminate between viators with dependents and without dependents.
D. A viatical settlement provider or viatical
				settlement broker shall not pay or offer to pay any finder's fee, commission or
				other compensation to any viator's physician, attorney, accountant or other
				person providing medical, legal or financial planning services to the viator,
				or to any other person acting as an agent of the viator, other than a viatical
				settlement broker, with respect to the viatical settlement.
E. Viatical settlement providers and viatical
				settlement brokers shall not knowingly solicit purchasers who may have treated
				or have been asked to treat the illness, or who could influence the treatment
				of the illness, of the viators whose coverage would be the subject of
				investment in or purchase of a viaticated policy.
Statutory Authority
§§ 12.1-13 and 38.2-223 of the Code of Virginia.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 71 - RULES GOVERNING VIATICAL SETTLEMENT PROVIDERS AND VIATICAL SETTLEMENT BROKERS › Section 14VAC5-71-93 - Insurance company practices

Current through Register Vol. 40, No. 24, July 15, 2024
A. Life insurance companies authorized to do
				business in this Commonwealth shall respond to a request for verification of
				coverage from a viatical settlement provider or a viatical settlement broker
				within 30 calendar days of the date a request is received. The insurer shall
				complete and issue the verification of coverage to the viatical settlement
				provider or, in its response, indicate whether, based on the medical evidence
				and documents provided, the insurer intends to pursue an investigation at this
				time regarding possible fraud or the validity of the contract, subject to the
				following conditions:
1. A current
				authorization consistent with applicable law, signed by the policy owner or
				certificate holder, accompanies the request.
2. In the case of an individual policy,
				submission of a verification of coverage form that is substantially similar to
				a form developed and adopted by the NAIC for such purpose or approved for such
				purpose by the commission, which has been completed by the viatical settlement
				provider or the viatical settlement broker in accordance with the instructions
				on the form.
3. In the case of
				group insurance coverage:
a. Submission of a
				verification of coverage form that is substantially similar to a form developed
				and adopted by the NAIC for such purpose or approved for such purpose by the
				commission, which has been completed by the viatical settlement provider or
				viatical settlement broker in accordance with the instructions on the form,
				and
b. Which has previously been
				referred to the group policyholder and completed to the extent the information
				is available to the group policyholder.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 71 - RULES GOVERNING VIATICAL SETTLEMENT PROVIDERS AND VIATICAL SETTLEMENT BROKERS › Section 14VAC5-71-100 - Severability

Current through Register Vol. 40, No. 24, July 15, 2024
If any provision of this chapter (14VAC5-71) or the
				  application thereof to any person or circumstance is for any reason held to be
				  invalid, the remainder of the chapter and the application of such provision to
				  other persons or circumstances shall not be affected thereby.
Statutory Authority
§§ 12.1-13 and 38.2-223 of the Code of Virginia.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 71 - RULES GOVERNING VIATICAL SETTLEMENT PROVIDERS AND VIATICAL SETTLEMENT BROKERS › Form - FORMS (14VAC5-71)

Current through Register Vol. 40, No. 24, July 15, 2024
Requirements for Operating in Virginia, SCCBO133 (eff.
				  1/04).
Application for License as a Viatical Settlement Provider,
				  SCCBO134 (eff. 1/04).
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 80 - RULES GOVERNING VARIABLE LIFE INSURANCE › Article I - Scope › Section 14VAC5-80-10 - Scope

Current through Register Vol. 40, No. 24, July 15, 2024
All life insurance, as defined in § 38.2-102 of the
					 Code of Virginia, payable in variable dollar amounts shall be subject to the
					 provisions of this chapter. In the event of conflict between the provisions of
					 this regulation and the provisions of any other regulation issued by the
					 Commission, the provisions of this chapter shall be controlling as to variable
					 life insurance.
Nothing contained in this chapter (14VAC5-80-10 et seq.), shall be
					 construed to relieve an insurer of complying with the statutory requirements
					 set forth in Title 38.2 of the Code of Virginia to the extent such statutory
					 requirements may be deemed by the Commission to be applicable to variable life
					 insurance.
Statutory Authority
§§ 12.1-13 and 38.2-3313 of the Code of
						Virginia.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 80 - RULES GOVERNING VARIABLE LIFE INSURANCE › Article III - Qualification of Insurer to Issue Variable Life Insurance › Section 14VAC5-80-30 - Licensing and approval to do business in the Commonwealth

Current through Register Vol. 40, No. 24, July 15, 2024
The following requirements are applicable to all insurers
					 either seeking authority to issue variable life insurance in this Commonwealth
					 or having authority to issue variable life insurance in this
					 Commonwealth.
An insurer shall not deliver or issue for delivery any
					 variable life insurance policy in this Commonwealth unless:
1. The insurer is licensed to transact a life
				  insurance business in this Commonwealth;
2. The insurer has obtained the necessary
				  written approvals of the Commission for the conduct of a variable life
				  insurance business in this Commonwealth. The Commission shall grant such
				  written approval only after it has found that:
a. The plan of operation for the issuance of
				  variable life insurance policies is not unsound;
b. The general character, reputation, and
				  experience of the management and those persons or firms proposed to supply
				  consulting, investment, administrative, or custodial services to the insurer
				  are such as to reasonably assure competent operation of the variable life
				  insurance business of the insurer in this Commonwealth; and
c. The present and foreseeable future
				  financial condition of the insurer and its method of operation in connection
				  with the issuance of such policies is not likely to render its operation
				  hazardous to the public or its policyholders in this Commonwealth. The
				  Commission shall consider, among other things:
(1) The history of operation and financial
				  condition of the insurer.
(2) The
				  qualifications, fitness, character, responsibility, reputation, and experience
				  of the officers and directors and other management of the insurer and those
				  persons or firms proposed to supply consulting, investment, administrative, or
				  custodial services to the insurer;
(3) The applicable law and regulations under
				  which the insurer is authorized in its state of domicile to issue variable life
				  insurance policies. The state of entry of an alien insurer shall be deemed its
				  state of domicile for this purpose; and
(4) If the insurer is a subsidiary of, or is
				  affiliated by common management or ownership with another company, its
				  relationship to such other company and the degree to which the requesting
				  insurer, as well as the other company, meet these standards.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 80 - RULES GOVERNING VARIABLE LIFE INSURANCE › Article III - Qualification of Insurer to Issue Variable Life Insurance › Section 14VAC5-80-40 - Filing for approval to do business in the Commonwealth

Current through Register Vol. 40, No. 24, July 15, 2024
The Commission may, at its discretion, require that an
					 insurer, before it delivers or issues for delivery any variable life insurance
					 policy in this Commonwealth, file the following information for the
					 consideration of the Commission in making the determination required by
					 subdivision 2 of
					 14VAC5-80-30 of this
					 article:
1. Copies of and a general
				  description of the variable life insurance policies it intends to issue;
				  however, approval of the insurer pursuant to this Article shall not be
				  construed as approval of the forms pursuant to Article IV of this
				  chapter;
2. A general description
				  of the methods of operation of the variable life insurance business of the
				  insurer; including methods of distribution of policies and the names of those
				  persons or firms proposed to supply consulting, investment, administrative,
				  custodial or distribution services to the insurer;
3. With respect to any separate account
				  maintained by an insurer for any variable life insurance policy, a statement of
				  the investment policy the issuer intends to follow for the investment of the
				  assets held in such separate account, and a statement of procedures for
				  changing such investment policy. The statement of investment policy shall
				  include a description of the investment objectives intended for the separate
				  account;
4. A description of any
				  investment advisory services contemplated as required by
				  14VAC5-80-290 of Article
				  VI.
5. A copy of the statutes and
				  regulations of the state of domicile of the insurer under which it is
				  authorized to issue variable life insurance policies; and
6. Biographical data with respect to officers
				  and directors of the insurer on the National Association of Insurance
				  Commissioners Uniform Biographical Data Form; and
7. A statement of the insurer's actuary
				  describing the mortality and expense risks which the insurer will bear under
				  the policy.
Statutory Authority
§§ 12.1-13 and 38.2-3313 of the Code of
						Virginia.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 80 - RULES GOVERNING VARIABLE LIFE INSURANCE › Article III - Qualification of Insurer to Issue Variable Life Insurance › Section 14VAC5-80-50 - Standards of suitability

Current through Register Vol. 40, No. 24, July 15, 2024
Every insurer seeking approval to enter into the variable
					 life insurance business in this Commonwealth shall establish and maintain a
					 written statement specifying the Standards of Suitability to be used by the
					 insurer. Such Standards of Suitability shall specify that no recommendations
					 shall be made to an applicant to purchase a variable life insurance policy and
					 that no variable life insurance policy or certificate shall be issued in the
					 absence of reasonable grounds to believe that the purchase of such policy or
					 certificate is not unsuitable for such applicant on the basis of information
					 furnished after reasonable inquiry of such applicant concerning the applicant's
					 insurance and investment objectives, financial situation and needs, and any
					 other information known to the insurer or to the agent making the
					 recommendation.
Statutory Authority
§§ 12.1-13 and 38.2-3313 of the Code of
						Virginia.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 80 - RULES GOVERNING VARIABLE LIFE INSURANCE › Article III - Qualification of Insurer to Issue Variable Life Insurance › Section 14VAC5-80-60 - Use of sales materials

Current through Register Vol. 40, No. 24, July 15, 2024
An insurer authorized to transact variable life insurance
					 business in this Commonwealth shall not use any sales material, advertising
					 material, or descriptive literature or other materials of any kind in
					 connection with its variable life insurance business in this Commonwealth which
					 is false, misleading, deceptive, or inaccurate.
Variable life insurance marketing communications shall be
					 subject to the additional requirements of Rules Governing Advertisement of Life
					 Insurance and Annuities (14VAC5-41-10
					 ).
Statutory Authority: 12.1-13 and 38.2-223 of the Code of
						Virginia.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 80 - RULES GOVERNING VARIABLE LIFE INSURANCE › Article III - Qualification of Insurer to Issue Variable Life Insurance › Section 14VAC5-80-70 - Requirements applicable to contractual services

Current through Register Vol. 40, No. 24, July 15, 2024
Any material contract between an insurer and suppliers of
					 consulting, investment, administrative, sales, marketing, custodial, or other
					 services with respect to variable life insurance operations shall be in writing
					 and provide that the supplier of such services shall furnish the Commission
					 with any information or reports in connection with such services which the
					 Commission may request in order to ascertain whether the variable life
					 insurance operations of the insurer are being conducted in a manner consistent
					 with this chapter and any other applicable law or
					 regulations.
Statutory Authority
§§ 12.1-13 and 38.2-3313 of the Code of
						Virginia.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 80 - RULES GOVERNING VARIABLE LIFE INSURANCE › Article III - Qualification of Insurer to Issue Variable Life Insurance › Section 14VAC5-80-80 - Reports to the Commission

Current through Register Vol. 40, No. 24, July 15, 2024
Any insurer authorized to transact the business of variable
					 life insurance in this Commonwealth shall submit to the Commission, in addition
					 to any other materials which may be required by this chapter or any other
					 applicable laws or regulations;
a. an
				  annual statement of the business of its separate account or accounts in such
				  form as may be prescribed by the Commission; and
b. prior to its use in this Commonwealth any
				  information furnished to applicants as provided for in Article VII
				  (14VAC5-80-300 ) and
c. prior to its use in this Commonwealth the
				  form of any of the Reports to Policyholders as provided for in Article IX
				  (14VAC5-80-320 ); and
d. such additional information concerning its
				  variable life insurance operations or its separate accounts as the Commission
				  shall deem necessary.
Any material submitted to the Commission under this section
					 shall be disapproved if it is found to be false, misleading, deceptive, or
					 inaccurate in any material respect and, if previously distributed, the
					 Commission may require the distribution of amended material.
Statutory Authority
§§ 12.1-13 and 38.2-3313 of the Code of
						Virginia.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 80 - RULES GOVERNING VARIABLE LIFE INSURANCE › Article III - Qualification of Insurer to Issue Variable Life Insurance › Section 14VAC5-80-90 - Authority of Commission to disapprove

Current through Register Vol. 40, No. 24, July 15, 2024
Any material required to be filed with and approved by the
					 Commission shall be subject to disapproval or withdrawal of approval if at any
					 time such material is found by the Commission not to comply with the standards
					 established by this chapter, or any other applicable statute or
					 regulation.
Statutory Authority
§§ 12.1-13 and 38.2-3313 of the Code of
						Virginia.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 80 - RULES GOVERNING VARIABLE LIFE INSURANCE › Article IV - Variable Life Insurance Form › Section 14VAC5-80-100 - Variable life insurance form approval; in general

Current through Register Vol. 40, No. 24, July 15, 2024
The Commission shall not approve any variable life
					 insurance form filed pursuant to this regulation unless it conforms to the
					 requirements of this Article and all other statutory and regulatory
					 requirements deemed applicable by the Commission. No policy or certificate
					 approved prior to June 15, 1992 shall be delivered or issued for delivery in
					 this Commonwealth until it has been approved by the Commission under the
					 requirements established by this section.
Statutory Authority
§§ 12.1-13 and 38.2-3313 of the Code of
						Virginia.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 80 - RULES GOVERNING VARIABLE LIFE INSURANCE › Article IV - Variable Life Insurance Form › Section 14VAC5-80-110 - Filing of variable life insurance policies

Current through Register Vol. 40, No. 24, July 15, 2024
All variable life insurance policies or certificates, and
					 all riders, endorsements, applications and other documents which are to be
					 attached to and made a part of the policy or certificate and which relate to
					 the variable nature of the policy, shall be filed with and approved by the
					 Commission prior to such forms being put in force, issued for delivery, or
					 delivered in this Commonwealth.
1. The
				  procedures and requirements for such filing and approval shall be, to the
				  extent appropriate and not inconsistent with this regulation, the same as those
				  otherwise applicable to other life insurance forms.
2. The Commission may approve variable life
				  insurance policies and related forms with provisions the Commission deems to be
				  not less favorable to the policyholder and the beneficiary than those required
				  by this regulation.
Statutory Authority
§§ 12.1-13 and 38.2-3313 of the Code of
						Virginia.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 80 - RULES GOVERNING VARIABLE LIFE INSURANCE › Article IV - Variable Life Insurance Form › Section 14VAC5-80-130 - Mandatory policy provisions

Current through Register Vol. 40, No. 24, July 15, 2024
Each variable life insurance policy filed for approval in
					 this Commonwealth shall in addition to other applicable statutory requirements,
					 contain the following:
1. The first
				  page of each policy shall contain:
a. A
				  prominent statement in boldface type at least two points larger than the type
				  used for policy provisions, printed in all capital letters, that the amount or
				  duration of death benefits may be variable or fixed under specified
				  conditions;
b. A prominent
				  statement in boldface type at least two points larger than the type used for
				  policy provisions, printed in all capital letters, that cash values may
				  increase or decrease in accordance with the experience of the separate account
				  subject to any specified minimum guarantees;
c. A prominent statement in contrasting color
				  and in boldface type at least two points larger than the type used for policy
				  provisions, printed in all capital letters, describing any minimum death
				  benefit required pursuant to subdivision 2 of
				  14VAC5-80-120;
d. A statement describing the method, or a
				  reference to the policy provision which describes the method, for determining
				  the amount of insurance payable at death;
e. When appropriate a prominent statement in
				  boldface type at least two points larger than the type used for policy
				  provisions, printed in all capital letters, that the policy loan value is less
				  than 100% of the policy's cash value surrender value;
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 80 - RULES GOVERNING VARIABLE LIFE INSURANCE › Article IV - Variable Life Insurance Form › Section 14VAC5-80-140 - Policy loan provisions

Current through Register Vol. 40, No. 24, July 15, 2024
Every variable life insurance policy, other than term
					 insurance policies and pure endowment policies, delivered or issued for
					 delivery in this Commonwealth shall contain, in addition to other applicable
					 statutory requirements, provisions which are not less favorable to the
					 policyholder than the following:
A provision for policy loans after the policy has been in
					 force for two full years which provides the following:
1. For scheduled premium policies, whenever
				  the indebtedness exceeds the cash surrender value, the insurer shall give
				  notice of any intent to cancel the policy if the excess indebtedness is not
				  repaid within 31 days after the date of mailing of such notice.
2. The policy may provide that if, at any
				  time, so long as premiums are duly paid, the variable death benefit is less
				  than it would have been if no loan or withdrawal had ever been made, the
				  policyowner may increase such variable death benefit up to what it would have
				  been if there had been no loan or withdrawal by paying an amount not exceeding
				  110% of the corresponding increase in cash value and by furnishing such
				  evidence of insurability as the insurer may request.
3. The policy may specify a reasonable
				  minimum amount which may be borrowed at any time but such minimum shall not
				  apply to any automatic premium loan provision.
4. The policy loan provisions shall be
				  constructed so that variable life insurance policyholders who have not
				  exercised such provisions are not disadvantaged by the exercise
				  thereof.
5. Any amount paid to the
				  policyholders upon the exercise of any policy loan provision shall be withdrawn
				  from the separate account and shall be returned to the separate account upon
				  repayment except that a stock insurer may provide the amount for policy loans
				  from the general account.
6. At
				  least 90% of the policy's cash surrender value may be borrowed.
Statutory Authority
§§ 12.1-13 and 38.2-3313 of the Code of
						Virginia.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 80 - RULES GOVERNING VARIABLE LIFE INSURANCE › Article IV - Variable Life Insurance Form › Section 14VAC5-80-150 - Other policy provisions

Current through Register Vol. 40, No. 24, July 15, 2024
The following provisions may in substance be included in a
					 variable life insurance policy or related form delivered or issued for delivery
					 in this Commonwealth:
1. For any
				  increase in death benefits which results from an application of the owner
				  subsequent to the policy issue date, the policy may provide an exclusion for
				  suicide within two years of such increase as to the increased amount of death
				  benefits. Any refund due under a suicide exclusion may be adjusted to reflect
				  the investment activity of the variable account;
2. Incidental insurance benefits may be
				  offered on a fixed or variable basis;
3. A provision allowing the policyholder to
				  elect in writing in the application for the policy or thereafter an automatic
				  premium loan on a basis not less favorable than that required of policy loans
				  under 14VAC5-80-140, except that a
				  restriction that no more than two consecutive premiums can be paid under this
				  provision may be imposed;
4. A
				  provision allowing the policyholder to make partial withdrawals;
5. Any other policy provision approved by the
				  Commission.
Statutory Authority
§§ 12.1-13 and 38.2-3313 of the Code of
						Virginia.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 80 - RULES GOVERNING VARIABLE LIFE INSURANCE › Article V - Reserve Liabilities for Variable Life Insurance [Repealed] › Section 14VAC5-80-160 to 14VAC5-80-190 - Repealed

Current through Register Vol. 40, No. 24, July 15, 2024