reglab/statecodes huggingface dataset:
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 280 - RULES ESTABLISHING STANDARDS FOR LIFE, ANNUITY, AND ACCIDENT AND SICKNESS REINSURANCE AGREEMENTS › Section 14VAC5-280-20 - Purpose

Current through Register Vol. 40, No. 24, July 15, 2024
The purpose of this regulation is:
(i) to set forth standards for reinsurance
				agreements involving life and health business in order that the financial
				statements of the insurers utilizing such agreements properly reflect the
				financial condition of the ceding insurer;
(ii) to recognize that insurers offering life
				insurance, annuities, or accident and sickness insurance routinely enter into
				reinsurance agreements that yield legitimate relief to the ceding insurer from
				strain to surplus; and
(iii) to
				remind insurers that it is improper for a licensed insurer, in the capacity of
				ceding insurer, to enter into reinsurance agreements for the principal purpose
				of producing significant surplus aid for the ceding insurer, typically on a
				temporary basis, while not transferring all of the significant risks inherent
				in the business being reinsured. In substance or effect, the expected potential
				liability to the ceding insurer remains basically unchanged by the reinsurance
				transaction, notwithstanding certain risk elements in the reinsurance
				agreement, such as catastrophic mortality or extraordinary survival.
The commission believes that insurers should be precluded
				  from claiming the surplus relief created by the terms of such agreements as
				  referred to herein and described in
				  14VAC5-280-40 of this chapter,
				  since the recognition of such surplus would be in conflict with:
1. The provisions of §§ 38.2-1300
				and 38.2-1301 of the Code of Virginia requiring insurers to file financial
				statements and reports that disclose full and accurate knowledge of their
				affairs and condition;
2. The
				provisions of Article 3.1 (§ 38.2-1316.1 et seq.) of Chapter 13 of Title
				38.2 of the Code of Virginia relating to reinsurance reserve credits and a
				ceding insurer's ability to reduce liabilities or establish assets for
				reinsurance ceded; and
3. The
				provisions of §§ 38.2-1038 and 38.2-1040 of the Code of Virginia
				concerning the manner in which the commission may respond to an insurer whose
				condition or continued operation may be hazardous to policyholders, creditors
				and the public in this Commonwealth.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 280 - RULES ESTABLISHING STANDARDS FOR LIFE, ANNUITY, AND ACCIDENT AND SICKNESS REINSURANCE AGREEMENTS › Section 14VAC5-280-30 - Scope

Current through Register Vol. 40, No. 24, July 15, 2024
This chapter shall apply to the life and health business of
				  all domestic insurers and to the life and health business of all other licensed
				  insurers who are not subject to substantially similar provisions in their
				  states of domicile or entry.
This chapter shall not apply to assumption reinsurance,
				  yearly renewable term reinsurance or certain nonproportional reinsurance such
				  as stop loss or catastrophe reinsurance; however, nothing herein shall in any
				  way limit or prevent the application of Article 3.1 (§ 38.2-1316.1 et
				  seq.) of Chapter 13 or any other provision in Title 38.2 of the Code of
				  Virginia to any type of insurer, business or reinsurance regardless of whether
				  such application entails a standard or principle set forth in this
				  chapter.
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 280 - RULES ESTABLISHING STANDARDS FOR LIFE, ANNUITY, AND ACCIDENT AND SICKNESS REINSURANCE AGREEMENTS › Section 14VAC5-280-50 - Written agreements

Current through Register Vol. 40, No. 24, July 15, 2024
A. No
				reinsurance agreement or amendment to any agreement may be used to reduce any
				liability or to establish any asset in any financial statement filed with the
				commission, unless the agreement, amendment or a letter of intent has been duly
				executed by both parties no later than the "as of date" of the financial
				statement.
B. In the case of a
				letter of intent, a reinsurance agreement or an amendment to a reinsurance
				agreement must be executed within a reasonable period of time, not exceeding 90
				days from the execution date of the letter of intent, in order for credit to be
				granted for the reinsurance ceded.
C. The reinsurance agreement shall at all
				times set forth the names of all parties to the agreement.
D. The reinsurance agreement shall contain
				provisions which provide that:
1. The
				agreement shall constitute the entire agreement between the parties with
				respect to the business being reinsured thereunder and that there are no
				understandings between the parties other than as expressed in the agreement;
				and
2. Any change or modification
				to the agreement shall be null and void unless made by amendment to the
				agreement and signed by both parties.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 280 - RULES ESTABLISHING STANDARDS FOR LIFE, ANNUITY, AND ACCIDENT AND SICKNESS REINSURANCE AGREEMENTS › Section 14VAC5-280-60 - Existing agreements

Current through Register Vol. 40, No. 24, July 15, 2024
Notwithstanding
				  14VAC5-280-40 A of this chapter,
				  insurers subject to this regulation may continue to reduce liabilities or
				  establish assets in financial statements filed with the commission for
				  reinsurance ceded under types of reinsurance agreements described in
				  14VAC5-280-20 and
				  14VAC5-280-40, provided:
1. The agreements were executed and in force
				prior to April 1, 1995;
2. The
				reduction of the liability or the asset established for the reinsurance ceded
				is reduced to 0 by December 31, 1995;
3. The reduction of the liability or the
				establishment of the asset was not prohibited by the commission's Rules
				Establishing Standards for Life, Annuity, and Accident and Sickness Reinsurance
				Agreements, which were adopted, effective December 1, 1991, by order of the
				commission entered October 24, 1991, in Case No. 910220 and which were in
				effect immediately prior to April 1, 1995, the effective date of these revised
				rules, and is otherwise permissible under all other applicable provisions of
				the laws of this Commonwealth, particularly the provisions of Title 38.2 of the
				Code of Virginia and related rules, regulations and administrative
				pronouncements, including actuarial interpretations or standards adopted by the
				commission; and
4. The commission
				is notified, on or before June 30, 1995, of the existence of such reinsurance
				agreements and all corresponding reserve credits taken or assets established in
				the ceding insurer's 1994 Annual Statement.
Statutory Authority
§§ 12.1-13, 38.2-223 and 38.2-1316.7 of the
					 Virginia Code.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 280 - RULES ESTABLISHING STANDARDS FOR LIFE, ANNUITY, AND ACCIDENT AND SICKNESS REINSURANCE AGREEMENTS › Section 14VAC5-280-70 - Severability

Current through Register Vol. 40, No. 24, July 15, 2024
If any provision in this chapter or its application to any
				  person or circumstance is for any reason held to be invalid by a court, the
				  remainder of this chapter and the application of the provisions to other
				  persons or circumstances shall not be affected.
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 280 - RULES ESTABLISHING STANDARDS FOR LIFE, ANNUITY, AND ACCIDENT AND SICKNESS REINSURANCE AGREEMENTS › Section 14VAC5-280-70:1 - EXHIBIT 1. SIGNIFICANT RISKS TABLE

Current through Register Vol. 40, No. 24, July 15, 2024
PRODUCT OR TYPE OF BUSINESS
RISK CATEGORIES**
a
b
c
d
e
f
Health Insurance--other than LTC/LTD*
+
0
+
0
0
0
Health Insurance--LTC/LTD*
+
0
+
+
+
0
Immediate Annuities
0
+
0
+
+
0
Single Premium Deferred Annuities
0
0
+
+
+
+
Flexible Premium Deferred Annuities
0
0
+
+
+
+
Guaranteed Interest Contracts
0
0
0
+
+
+
Other Annuity Deposit Business
0
0
+
+
+
+
Single Premium Whole Life
0
+
+
+
+
+
Traditional Nonparticipating Permanent
0
+
+
+
+
+
Traditional Nonparticipating Term
0
+
+
0
0
0
Traditional Participating Permanent
0
+
+
+
+
+
Traditional Participating Term
0
+
+
0
0
0
Adjustable Premium Permanent
0
+
+
+
+
+
Indeterminate Premium Permanent
0
+
+
+
+
+
Universal Life Flexible Premium
0
+
+
+
+
+
Universal Life Fixed Premium
0
+
+
+
+
+
Universal Life Fixed Premium (dump-in
						  premiums allowed)
0
+
+
+
+
+
+ = Significant; 0 = Insignificant
*LTC = Long Term Care Insurance; LTD = Long
						  Term Disability Insurance
**Risk Categories:
(a) Morbidity.
(b) Mortality.
(c) Lapse. This is the risk that a policy
						  will voluntarily terminate prior to the recoupment of a statutory surplus
						  strain experienced at issue of the policy.
(d) Credit Quality (C1). This is the risk
						  that invested assets supporting the reinsured business will decrease in value.
						  The main hazards are that assets will default or that there will be a decrease
						  in earning power. It excludes market value declines due to changes in interest
						  rates.
(e) Reinvestment (C3). This is the risk that
						  interest rates will fall and funds reinvested (coupon payments or moneys
						  received upon asset maturity or call) will therefore earn less than expected.
						  If asset durations are less than liability durations, the mismatch will
						  increase.
(f) Disintermediation (C3). This is the risk
						  that interest rates rise and policy loans and surrenders increase or maturing
						  contracts do not renew at anticipated rates of renewal. If asset durations are
						  greater than the liability durations, the mismatch will increase. Policyholders
						  will move their funds into new products offering higher rates. The company may
						  have to sell assets at a loss to provide for these withdrawals.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 280 - RULES ESTABLISHING STANDARDS FOR LIFE, ANNUITY, AND ACCIDENT AND SICKNESS REINSURANCE AGREEMENTS › Section 14VAC5-280-70:2 - EXHIBIT 2. SAMPLE FORMULA FOR DETERMINING RESERVE INTEREST RATE ADJUSTMENT

Current through Register Vol. 40, No. 24, July 15, 2024
(Terms and data are as defined in the NAIC Annual Statement
				  blank)
Rate =
2 (I + CG)
X + Y - I - CG
Where: I is the net investment income
CG is realized and unrealized capital gains less realized and
				  unrealized capital losses
X is the current year cash and invested assets plus
				  investment income due and accrued less borrowed money
Y is the same as X but for the prior year
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 290 - RULES ESTABLISHING STANDARDS FOR COMPANIES DEEMED TO BE IN HAZARDOUS FINANCIAL CONDITION › Section 14VAC5-290-10 - Purpose

Current through Register Vol. 40, No. 24, July 15, 2024
The purpose of this chapter is to set forth the standards
				  that the commission may use for identifying insurers found to be in such
				  condition as to render the continuance of their business hazardous to their
				  policyholders, creditors, or the general public.
This chapter shall not be interpreted to limit the powers
				  granted the commission by any laws or provisions of any law of this
				  Commonwealth, nor shall this chapter be interpreted to supersede any laws or
				  parts of laws of this Commonwealth.
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 290 - RULES ESTABLISHING STANDARDS FOR COMPANIES DEEMED TO BE IN HAZARDOUS FINANCIAL CONDITION › Section 14VAC5-290-20 - Applicability and scope

Current through Register Vol. 40, No. 24, July 15, 2024
This chapter shall apply to every entity that is licensed,
				  approved, registered, or accredited in Virginia under the provisions of Title
				  38.2 of the Code of Virginia, and also subject to solvency regulation in this
				  Commonwealth pursuant to the provisions of Title 38.2 of the Code of Virginia.
				  All such entities are hereinafter referred to as "insurer."
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 290 - RULES ESTABLISHING STANDARDS FOR COMPANIES DEEMED TO BE IN HAZARDOUS FINANCIAL CONDITION › Section 14VAC5-290-40 - Commission's authority

Current through Register Vol. 40, No. 24, July 15, 2024
A. For
				purposes of making a determination of an insurer's financial condition, the
				commission may:
1. Disregard any credit or
				amount receivable resulting from transactions with a reinsurer that is
				insolvent, impaired, or otherwise subject to a delinquency
				proceeding;
2. Make appropriate
				adjustments, including disallowance, to asset values attributable to
				investments in or transactions with parents, subsidiaries, or affiliates
				consistent with the NAIC Accounting Practices and Procedures Manual, state
				laws, and regulations;
3. Refuse to
				recognize the stated value of accounts receivable if the ability to collect
				receivables is highly speculative in view of the age of the account or the
				financial condition of the debtor;
4. Increase the insurer's liability in an
				amount equal to any contingent liability, pledge, or guarantee not otherwise
				included if there is a substantial risk that the insurer will be called upon to
				meet the obligation undertaken within the next 12-month period.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 290 - RULES ESTABLISHING STANDARDS FOR COMPANIES DEEMED TO BE IN HAZARDOUS FINANCIAL CONDITION › Section 14VAC5-290-50 - Severability

Current through Register Vol. 40, No. 24, July 15, 2024
If any provision in this chapter 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 the 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 300 - RULES GOVERNING CREDIT FOR REINSURANCE › Section 14VAC5-300-10 - Purpose

Current through Register Vol. 40, No. 24, July 15, 2024
The purpose of this chapter is to set forth rules and
				  procedural requirements which the commission has determined are necessary to
				  carry out the provisions of Article 3.1 (§ 38.2-1316.1 et seq.) of Chapter
				  13 of Title 38.2 of the Code of Virginia.
Statutory Authority
§§ 38.2-223, 38.2-1316.7 and 12.1-13 of the Code
					 of Virginia.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 300 - RULES GOVERNING CREDIT FOR REINSURANCE › Section 14VAC5-300-30 - Applicability and scope

Current through Register Vol. 40, No. 24, July 15, 2024
This chapter shall apply to all insurers taking credit for
				  reinsurance under the provisions of Article 3.1 (§ 38.2-1316.1 et seq.) of
				  Chapter 13 of Title 38.2 of the Code of Virginia.
Statutory Authority
§§ 38.2-223, 38.2-1316.7 and 12.1-13 of the Code
					 of Virginia.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 300 - RULES GOVERNING CREDIT FOR REINSURANCE › Section 14VAC5-300-40 - Definitions

Current through Register Vol. 40, No. 24, July 15, 2024
The following words and terms when used in this chapter shall
				  have the following meanings unless the context clearly indicates
				  otherwise:
"The Act" means the provisions concerning reinsurance set
				  forth in Article 3.1 (§
									38.2-1316.1 et seq.)
				  of Chapter 13 of Title 38.2 of the Code of Virginia.
"Beneficiary" means the entity for whose sole benefit the
				  trust described in
				  14VAC5-300-120,
				  or the letter of credit described in
				  14VAC5-300-130,
				  has been established and any successor of the beneficiary by operation of law,
				  including, without limitation, any receiver, conservator, rehabilitator or
				  liquidator.
"Certified reinsurer" has the meaning set forth in §
									38.2-1316.1 of the
				  Code of Virginia.
"Grantor" means the entity that has established a trust for
				  the sole benefit of the beneficiary. However, when such a trust is established
				  in conjunction with a reinsurance agreement that qualifies for credit under
				  14VAC5-300-120,
				  the grantor shall not be an assuming insurer for which credit can be taken
				  under §
									38.2-1316.2
				  of the Code of Virginia.
"Mortgage-related security" means an obligation that is rated
				  AA or higher (or the equivalent) by a securities rating agency recognized by
				  the Securities Valuation Office of the NAIC and that either:
1.  Represents ownership of one or more promissory notes or
				  certificates of interest or participation in the notes (including any rights
				  designed to assure servicing of, or the receipt or timeliness of receipt by the
				  holders of the notes, certificates, or participation of amounts payable under,
				  the notes, certificates or participation), that:
a.  Are directly secured by a first lien on a single parcel of
				  real estate, including stock allocated to a dwelling unit in a residential
				  cooperative housing corporation, upon which is located a dwelling or mixed
				  residential and commercial structure, or on a residential manufactured home as
				  defined in 42 USCA § 5402(6), whether the manufactured home is considered
				  real or personal property under the laws of the state in which it is located;
				  and
b.  Were originated by a savings and loan association, savings
				  bank, commercial bank, credit union, insurance company, or similar institution
				  that is supervised and examined by a federal or state housing authority, or by
				  a mortgagee approved by the Secretary of Housing and Urban Development pursuant
				  to 12 USCA §§ 1709 and 1715-b, or, where the notes involve a lien on
				  the manufactured home, by an institution or by a financial institution approved
				  for insurance by the Secretary of Housing and Urban Development pursuant to 12
				  USCA § 1703; or
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 300 - RULES GOVERNING CREDIT FOR REINSURANCE › Section 14VAC5-300-60 - Credit for reinsurance; reinsurer licensed in this Commonwealth

Current through Register Vol. 40, No. 24, July 15, 2024
Pursuant to §
									38.2-1316.2C
				  1 of the Act, the commission shall allow credit when reinsurance is ceded to an
				  assuming insurer which is licensed to transact insurance in this Commonwealth.
				  For purposes of this section, an insurer shall not be considered so "licensed"
				  unless it is fully authorized to actively solicit and conduct its business in
				  this Commonwealth and in its domiciliary state.
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 300 - RULES GOVERNING CREDIT FOR REINSURANCE › Section 14VAC5-300-70 - Credit for reinsurance; accredited reinsurers

Current through Register Vol. 40, No. 24, July 15, 2024
A. Pursuant to §
									38.2-1316.2C
				2 of the Act, the commission shall allow credit for reinsurance ceded by a
				domestic insurer to an assuming insurer that is accredited as a reinsurer in
				this Commonwealth as of the date on which statutory financial statement credit
				for reinsurance is claimed. An accredited reinsurer shall:
1. File a properly executed Certificate of
				Assuming Insurer as evidence of its submission to this Commonwealth's
				jurisdiction and to this Commonwealth's authority to examine its books and
				records;
2. File with the
				commission a certified copy of a certificate of authority or other acceptable
				evidence that it is licensed to transact insurance or reinsurance in at least
				one state, or, in the case of a United States branch of an alien assuming
				insurer, is entered through and licensed to transact insurance or reinsurance
				in at least one state;
3. File
				annually with the commission an electronic copy of its annual statement filed
				with the insurance department of its state of domicile or, in the case of an
				alien assuming insurer, with the state through which it is entered and in which
				it is licensed to transact insurance or reinsurance, and a copy of its most
				recent audited financial statement; and
4. Maintain a surplus as regards
				policyholders in an amount not less than $20 million, or obtain the affirmative
				approval of the commission upon a finding that it has adequate financial
				capacity to meet its reinsurance obligations and is otherwise qualified to
				assume reinsurance from domestic insurers.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 300 - RULES GOVERNING CREDIT FOR REINSURANCE › Section 14VAC5-300-80 - Credit for reinsurance; reinsurer domiciled and licensed in another state, and neither licensed nor accredited in Virginia

Current through Register Vol. 40, No. 24, July 15, 2024
A. Pursuant to the provisions of §
									38.2-1316.2C
				3 of the Act, the commission shall allow credit for reinsurance ceded by a
				domestic insurer to an assuming insurer that as of any date on which statutory
				financial statement credit for reinsurance is claimed:
1. Is domiciled in or, in the case of a
				United States branch of an alien assuming insurer, is entered through a state
				that employs standards regarding credit for reinsurance substantially similar
				to those applicable under the Act and this chapter;
2. Maintains a surplus as regards
				policyholders in an amount not less than $20 million; and
3. Files a properly executed Certificate of
				Assuming Insurer with the commission as evidence of its submission to this
				Commonwealth's authority to examine its books and records.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 300 - RULES GOVERNING CREDIT FOR REINSURANCE › Section 14VAC5-300-90 - Credit for reinsurance; reinsurers maintaining trust funds

Current through Register Vol. 40, No. 24, July 15, 2024
A. Pursuant to
				§
									38.2-1316.2C
				4 of the Act, the commission shall allow credit for reinsurance ceded to a
				trusteed assuming insurer which, as of the date of the ceding insurer's
				statutory financial statement:
1. Maintains a
				trust fund and trusteed surplus that complies with the provisions of §
										38.2-1316.2C
				4;
2. Complies with the
				requirements set forth in subsections B, C, and D of this section;
				and
3. Reports annually to the
				commission on or before June 1 of each year in which a ceding insurer seeks
				reserve credit under the Act substantially the same information as that
				required to be reported on the NAIC annual statement form by licensed insurers,
				to enable the commission to determine the sufficiency of the trust fund. The
				accounting shall, among other things, set forth the balance to the trust and
				list the trust's investments as of the preceding year end and shall certify the
				date of termination of the trust, if so planned, or certify that the trust
				shall not expire prior to the next following December 31.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 300 - RULES GOVERNING CREDIT FOR REINSURANCE › Section 14VAC5-300-100 - Credit for reinsurance required by law

Current through Register Vol. 40, No. 24, July 15, 2024
When an assuming insurer fails to meet the requirements of
				  § 38.2-1316.2 of the Act, the ceding insurer may take credit pursuant to
				  subdivision 1 of § 38.2-1316.4 of the Act but only with respect to the
				  insurance of risks located in jurisdictions where such reinsurance is required
				  by the applicable law or regulation of that jurisdiction. As used in this
				  section, "jurisdiction" means any state, district or territory of the United
				  States and any lawful national government.
Statutory Authority
§§ 38.2-223, 38.2-1316.7 and 12.1-13 of the Code
					 of Virginia.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 300 - RULES GOVERNING CREDIT FOR REINSURANCE › Section 14VAC5-300-110 - Asset or reduction from liability for reinsurance ceded to an assuming insurer not meeting the requirements of 14VAC5-300-60 through 14VAC5-300-100

Current through Register Vol. 40, No. 24, July 15, 2024
A.
				Pursuant to §
									38.2-1316.4
				of the Act, the commission shall allow a reduction from liability for
				reinsurance ceded by a domestic insurer to an assuming insurer not meeting the
				requirements of §
									38.2-1316.2
				of the Act in an amount not exceeding the liabilities carried by the ceding
				insurer. The reduction shall be in the amount of funds held by or on behalf of
				the ceding insurer, including funds held in trust for the exclusive benefit of
				the ceding insurer, under a reinsurance contract with such assuming insurer as
				security for the payment of obligations under the reinsurance contract. The
				security shall be held in the United States subject to withdrawal solely by,
				and under the exclusive control of, the ceding insurer or, in the case of a
				trust, held in a qualified United States financial institution as defined in
				§
									38.2-1316.1 of the
				Act. This security may be in the form of any of the following:
(1) Cash;
(2) Securities listed by the Securities
				Valuation Office of the NAIC, including those deemed exempt from filing as
				defined by the Purposes and Procedures Manual of the NAIC Investment Analysis
				Office, and qualifying as admitted assets;
(3) Clean, irrevocable, unconditional, and
				"evergreen" letters of credit issued or confirmed by a qualified United States
				institution, as defined in §
										38.2-1316.1 of the
				Act, effective no later than December 31 of the year for which filing is being
				made, and in the possession of, or in trust for, the ceding insurer on or
				before the filing date of its annual statement. Letters of credit meeting
				applicable standards of issuer acceptability as of the dates of their issuance
				(or confirmation) shall, notwithstanding the issuing (or confirming)
				institution's subsequent failure to meet applicable standards of issuer
				acceptability, continue to be acceptable as security until their expiration,
				extension, renewal, modification or amendment, whichever first occurs;
				or
(4) Any other form of security
				acceptable to the commission.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 300 - RULES GOVERNING CREDIT FOR REINSURANCE › Section 14VAC5-300-140 - Other security

Current through Register Vol. 40, No. 24, July 15, 2024
The commission may allow credit pursuant to subdivision 2 d
				  of § 38.2-1316.4 of the Act for unencumbered funds withheld by the ceding
				  insurer in the United States subject to withdrawal solely by the ceding insurer
				  and under its exclusive control.
Statutory Authority
§§ 38.2-223, 38.2-1316.7 and 12.1-13 of the Code
					 of Virginia.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 300 - RULES GOVERNING CREDIT FOR REINSURANCE › Section 14VAC5-300-150 - Reinsurance contract

Current through Register Vol. 40, No. 24, July 15, 2024
A.
				Credit will not be granted, nor an asset or reduction from liability allowed,
				to a ceding insurer for reinsurance effected with assuming insurers meeting the
				requirements of
				14VAC5-300-60,
				14VAC5-300-70,
				14VAC5-300-80,
				14VAC5-300-90,
				14VAC5-300-95,
				14VAC5-300-97, or
				14VAC5-300-110
				or otherwise in compliance with §
									38.2-1316.2
				of the Act unless the reinsurance agreement:
1. Includes a proper insolvency clause that
				stipulates that reinsurance is payable directly to the liquidator or successor
				without diminution regardless of the status of the ceding company;
2. Includes a provision whereby the assuming
				insurer, if an unauthorized assuming insurer, has submitted to the jurisdiction
				of an alternative dispute resolution panel or court of competent jurisdiction
				within the United States, has agreed to comply with all requirements necessary
				to give such court or panel jurisdiction, has designated an agent upon whom
				service of process may be effected, and has agreed to abide by the final
				decisions of such court or panel; and
3. Includes a proper reinsurance intermediary
				clause, if applicable, that stipulates that the credit risk for the
				intermediary is carried by the assuming insurer.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 300 - RULES GOVERNING CREDIT FOR REINSURANCE › Section 14VAC5-300-160 - Contracts affected

Current through Register Vol. 40, No. 24, July 15, 2024
All new and renewal reinsurance transactions entered into
				  after December 31, 2012, shall conform to the requirements of the Act and this
				  chapter if credit is to be given to the ceding insurer for such reinsurance.
				  Unless otherwise provided in this chapter, credits for cessions under
				  reinsurance agreements in force on July 1, 2012, or commenced within six months
				  thereafter, shall be governed by the requirements for such credits in effect on
				  June 30, 2012.
Statutory Authority
§§ 38.2-223, 38.2-1316.7 and 12.1-13 of the Code
					 of Virginia.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 300 - RULES GOVERNING CREDIT FOR REINSURANCE › Section 14VAC5-300-170 - Severability

Current through Register Vol. 40, No. 24, July 15, 2024
If any provision in this chapter 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 the provision to other persons
				  or circumstances shall not be affected thereby.
Statutory Authority
§§ 38.2-223, 38.2-1316.7 and 12.1-13 of the Code
					 of Virginia.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 300 - RULES GOVERNING CREDIT FOR REINSURANCE › Form - FORMS (14VAC5-300)

Current through Register Vol. 40, No. 24, July 15, 2024
Certificate
				  of Assuming Insurer - Year Ended December 31, 2017, R05 (05/18) (eff.
				  5/2018)
Certificate
				  of Certified Reinsurer - Year Ended December 31, ____, R15 (11/19) (eff.
				  11/2019)
Schedule
				  S, Part 1 - Part 7, 1994-2017 National Association of Insurance Commissioners,
				  Annual Statement Blank, Life, Accident & Health (eff.
				  1/2018)
Schedule
				  F, Part 1 - Part 9, 1994-2017 National Association of Insurance Commissioners,
				  Annual Statement Blank, Property/Casualty (eff. 1/2018)
Form
				  CR-F - Part 1 - Part 2, 2011 National Association of Insurance Commissioners
				  (eff. 1/2013)
Form
				  CR-S - Part 1 - Part 3, 2011 National Association of Insurance Commissioners
				  (eff. 1/2013)
Certificate
				  of Reinsurer Domiciled in Reciprocal Jurisdiction - Year Ended December 31,
				  ____, RJ-1 (07/20) (eff. 7/2020)
Statutory Authority: §§
											12.1-13
					 and
					 38.2-1316.2
					 of the Code of Virginia.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 300 - RULES GOVERNING CREDIT FOR REINSURANCE › Section - DOCUMENTS INCORPORATED BY REFERENCE (14VAC5-300-9999)

Current through Register Vol. 40, No. 24, July 15, 2024
NAIC
				  Policy Statement on Financial Regulation Standards, 2018, National Association
				  of Insurance Commissioners
NAIC Annual Statement Instructions, 2017 Life Annual
				  Statement Instructions, September 1, 2017, National Association of Insurance
				  Commissioners and the Center for Insurance Policy and Research.
NAIC Annual Statement Instructions, 2017 Property/Casualty
				  Annual Statement Instructions, September 1, 2017, National Association of
				  Insurance Commissioners and the Center for Insurance Policy and
				  Research.
NAIC Accounting Practices & Procedures Manual, Volumes I,
				  II, March 2018, National Association of Insurance Commissioners.
ICC Uniform Customs and Practice for Documentary Credits (UCP
				  500), 1993, International Chamber of Commerce.
ICC Uniform Customs and Practice for Documentary Credits (UCP
				  600), 2007, International Chamber of Commerce.
International Standby Practices ISP98, 1999, The Institute of
				  International Banking Law and Practice, Inc.
Purposes and Procedures Manual of the NAIC Investment
				  Analysis Office - Effective for Statements Ending December 31, 2017,
				  Volume/Issue 17/01, 2017, National Association of Insurance
				  Commissioners.
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 310 - RULES GOVERNING ACTUARIAL OPINIONS AND MEMORANDA › Section 14VAC5-310-10 - Purpose

Current through Register Vol. 40, No. 24, July 15, 2024
The purpose of this chapter (14VAC5-310) is to
				  prescribe:
1. Requirements for
				statements of actuarial opinion that are to be submitted in accordance with
				§ 38.2-1367 of the Code of Virginia, and for memoranda in support
				thereof;
2. Rules applicable to the
				appointment of an appointed actuary; and
3. Guidance as to the meaning of "adequacy of
				reserves."
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 310 - RULES GOVERNING ACTUARIAL OPINIONS AND MEMORANDA › Section 14VAC5-310-20 - Authority; effective date

Current through Register Vol. 40, No. 24, July 15, 2024
This chapter (14VAC5-310) is adopted and promulgated by the
				  commission pursuant to §§ 12.1-13, 38.2-223, and 38.2-1367 of the
				  Code of Virginia. This chapter will take effect for annual statements for the
				  year-ending December 31, 1992. Except as otherwise specifically provided,
				  revisions to this chapter shall be effective upon adoption by the commission
				  and applicable as to annual statements and actuarial opinions, memoranda, and
				  statements of reserves filed with the commission for periods ending on or after
				  December 31 of the year in which the revision is adopted.
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 310 - RULES GOVERNING ACTUARIAL OPINIONS AND MEMORANDA › Section 14VAC5-310-30 - Scope

Current through Register Vol. 40, No. 24, July 15, 2024
A. This chapter
				(14VAC5-310) shall apply to all companies subject to the provisions of §
				38.2-1367 of the Code of Virginia, including fraternal benefit societies
				licensed under Chapter 41 (§ 38.2-4100 et seq.) of Title 38.2 and all
				other companies licensed under Title 38.2 of the Code of Virginia to write and
				reinsure policies or agreements providing any form of life, life insurance, or
				annuity benefits as those terms are defined in §§ 38.2-102 through
				38.2-107.1 of the Code of Virginia and also to any life insurer authorized to
				write or reinsure accident and sickness insurance as defined in § 38.2-109
				of the Code of Virginia.
B. This
				chapter shall be applied in a manner that allows the appointed actuary to
				utilize professional judgment in performing the asset analysis and developing
				the actuarial opinion and supporting memoranda, consistent with relevant
				actuarial standards of practice unless the commission determines particular
				specifications are necessary for an acceptable opinion to be rendered relative
				to the adequacy of reserves and related items. Particular specifications,
				including specific methods of actuarial analysis and actuarial assumptions, may
				be promulgated by rule or order of the commission or by an administrative
				letter issued by the Commissioner of Insurance.
C. This chapter, as reflected in rules
				adopted by the commission by order entered November 5, 1992, in Case No.
				INS920377, shall be applicable to all annual statements filed with the
				commission on or after December 15, 1992, and before December 31, 2003. On and
				after December 31, 2003, a statement of opinion on the adequacy of the reserves
				and related actuarial items based on an asset adequacy analysis in accordance
				with 14VAC5-310-80, and a memorandum in
				support thereof in accordance with
				14VAC5-310-90, shall be required
				each year in accordance with rules as revised and adopted by order of the
				commission entered in Case No. INS-2003-00165.
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 310 - RULES GOVERNING ACTUARIAL OPINIONS AND MEMORANDA › Section 14VAC5-310-40 - Definitions

Current through Register Vol. 40, No. 24, July 15, 2024
As used in this chapter unless the context clearly indicates
				  otherwise:
"Actuarial opinion" means the opinion of an appointed
				  actuary regarding the adequacy of reserves and related actuarial items based on
				  an asset adequacy analysis in accordance with
				  14VAC5-310-80 and with applicable
				  Actuarial Standards of Practice.
"Actuarial Standards Board" means the board established by
				  the American Academy of Actuaries to develop and promulgate standards of
				  actuarial practice.
"Annual statement" means that statement required by §
				  38.2-1300 of the Code of Virginia to be filed by the company with the
				  commission annually.
"Appointed actuary" means any individual who is appointed or
				  retained in accordance with the requirements set forth in
				  14VAC5-310-50 C to provide the
				  actuarial opinion and supporting memorandum as required by § 38.2-1367 of
				  the Code of Virginia.
"Asset adequacy analysis" means an analysis that meets the
				  standards and other requirements referred to in
				  14VAC5-310-50 D.
"Commission" means the Virginia State Corporation
				  Commission.
"Commissioner" means the Commissioner of Insurance in
				  Virginia unless specific reference is made to another state, in which case
				  "commissioner" means the Insurance Commissioner, Director, Superintendent or
				  other supervising regulatory official of a given state who is responsible for
				  administering the insurance laws of that state.
"Company" means a life insurer, company or fraternal benefit
				  society subject to the provisions of this chapter.
"NAIC" means the National Association of Insurance
				  Commissioners.
"Qualified actuary" means any individual who meets the
				  requirements set forth in
				  14VAC5-310-50 B.
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 310 - RULES GOVERNING ACTUARIAL OPINIONS AND MEMORANDA › Section 14VAC5-310-50 - General requirements for actuarial opinions

Current through Register Vol. 40, No. 24, July 15, 2024
A. The following requirements apply to all
				companies submitting a statement of actuarial opinion in compliance with §
				38.2-1367 of the Code of Virginia.
1. There
				is to be included on or attached to page 1 of the annual statement for each
				year ending on or after December 31, 1992, the statement of an appointed
				actuary, entitled "Statement of Actuarial Opinion," setting forth an opinion
				relating to reserves and related actuarial items held in support of policies
				and contracts, in accordance with
				14VAC5-310-80.
2. Upon written request by the company, the
				commission may grant an extension of the date for submission of the statement
				of actuarial opinion.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 310 - RULES GOVERNING ACTUARIAL OPINIONS AND MEMORANDA › Section 14VAC5-310-80 - Statement of actuarial opinion based on an asset adequacy analysis

Current through Register Vol. 40, No. 24, July 15, 2024
A. The statement of
				actuarial opinion submitted in accordance with this section shall consist of:
1. A paragraph identifying the appointed
				actuary and his qualifications (and complying with the requirements of
				subdivision B 1 of this section;
2.
				A scope paragraph identifying the subjects on which an opinion is to be
				expressed and describing the scope of the appointed actuary's work, including a
				tabulation delineating the reserves and related actuarial items that have been
				analyzed for asset adequacy and the method of analysis, and identifying the
				reserves and related actuarial items covered by the opinion that have not been
				so analyzed (see subdivision B 2 of this section);
3. A reliance paragraph describing those
				areas, if any, where the appointed actuary has deferred to other experts in
				developing data, procedures or assumptions, (e.g., anticipated cash flows from
				currently owned assets, including variation in cash flows according to economic
				scenarios (see subdivision B 3 of this section)), supported by a statement of
				each such expert in the form prescribed by subsection E of this
				section;
4. An opinion paragraph
				expressing the appointed actuary's opinion with respect to the adequacy of the
				supporting assets to mature the liabilities (see subdivision B 6 of this
				section); and
5. One or more
				additional paragraphs, which will be needed in individual company cases to
				address matters such as the following:
a. If
				the appointed actuary considers it necessary to state a qualification of the
				opinion;
b. If the appointed
				actuary must disclose an inconsistency in the method of analysis or basis of
				asset allocation used at the prior opinion date with that used for this
				opinion;
c. If the appointed
				actuary must disclose whether additional reserves of the prior opinion date are
				released as of this opinion date, and the extent of the release;
d. If the appointed actuary chooses to add a
				paragraph briefly describing the assumptions that form the basis for the
				actuarial opinion.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 310 - RULES GOVERNING ACTUARIAL OPINIONS AND MEMORANDA › Section 14VAC5-310-100 - Record retention

Current through Register Vol. 40, No. 24, July 15, 2024
The appointed actuary shall retain on file, for at least
				  seven years, sufficient documentation so that it will be possible to determine
				  the procedures followed, the analyses performed, the bases for assumptions and
				  the results obtained.
Statutory Authority
§§ 12.1-13, 38.2-223, and 38.2-3127.1 of the Code
					 of Virginia.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 310 - RULES GOVERNING ACTUARIAL OPINIONS AND MEMORANDA › Section 14VAC5-310-120 - Severability

Current through Register Vol. 40, No. 24, July 15, 2024
If any provision of this chapter (14VAC5-310-10 et seq.), or its
				  application to any person, company or circumstance, is held invalid, such
				  determination shall not affect other provisions or applications of this
				  chapter, which can be given effect without the invalid provision or
				  application, and to that end the provisions of this chapter are
				  severable.
Statutory Authority
§§ 12.1-13, 38.2-223, and 38.2-3127.1 of the
					 Code of Virginia.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 318 - RULES GOVERNING TERM AND UNIVERSAL LIFE INSURANCE RESERVE FINANCING › Section 14VAC5-318-10 - Purpose and scope

Current through Register Vol. 40, No. 24, July 15, 2024
The purpose of this chapter is to set forth rules and
				  procedural requirements to establish uniform, national standards governing
				  reserve financing arrangements pertaining to life insurance policies containing
				  guaranteed nonlevel gross premiums or guaranteed nonlevel benefits and
				  universal life insurance policies with secondary guarantees and to ensure that,
				  with respect to each such financing arrangement, funds consisting of primary
				  security and other security, as defined in 14VAC5-318-30, are held by or on
				  behalf of ceding insurers in the forms and amounts required in this chapter. In
				  general, reinsurance ceded for reserve financing purposes has one or more of
				  the following characteristics: some or all of the assets used to secure the
				  reinsurance treaty or to capitalize the reinsurer (i) are issued by the ceding
				  insurer or its affiliates; (ii) are not unconditionally available to satisfy
				  the general account obligations of the ceding insurer; or (iii) create a
				  reimbursement, indemnification, or other similar obligation on the part of the
				  ceding insurer or any if its affiliates (other than a payment obligation under
				  a derivative contract acquired in the normal course and used to support and
				  hedge liabilities pertaining to the actual risks in the policies ceded pursuant
				  to the reinsurance treaty).
Statutory Authority: §§
											12.1-13,
					 38.2-223, and
					 38.2-1316.7 of the Code of
					 Virginia.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 318 - RULES GOVERNING TERM AND UNIVERSAL LIFE INSURANCE RESERVE FINANCING › Section 14VAC5-318-20 - Applicability

Current through Register Vol. 40, No. 24, July 15, 2024
This chapter shall apply to reinsurance treaties that cede
				  liabilities pertaining to covered policies, as that term is defined in
				  14VAC5-318-30, issued by any life insurance company domiciled in this
				  Commonwealth. The requirements of this chapter shall pertain to all covered
				  policies in force as of and after January 1, 2018. This chapter and 14VAC5-300
				  shall both apply to such reinsurance treaties, provided that in the event of a
				  direct conflict between the provisions of this chapter and 14VAC5-300, the
				  provisions of this chapter shall apply, but only to the extent of the
				  conflict.
Statutory Authority: §§
											12.1-13,
					 38.2-223, and
					 38.2-1316.7 of the Code of
					 Virginia.