                                 CODE OF VIRGINIA

RULES AND REGULATIONS (§ 38.2-1316.7)

A. The Commission may adopt rules and regulations implementing the provisions of
this article.

B. The Commission is further authorized to adopt rules and regulations
applicable to reinsurance arrangements described in subdivision 1. A regulation
adopted pursuant to:

   1. This subsection shall apply only to reinsurance relating to:
   				a. Life insurance policies with guaranteed nonlevel gross premiums or
   guaranteed nonlevel benefits;				b. Universal life insurance policies with
   provisions resulting in the ability of a policyholder to keep a policy in
   force over a secondary guarantee period;				c. Variable annuities with
   guaranteed death or living benefits;				d. Long-term care insurance policies;
   or				e. Such other life and health insurance and annuity products as to which
   the NAIC adopts model regulatory requirements with respect to credit for
   reinsurance.

   2. Subdivision 1 a or 1 b shall apply to any treaty containing (i) policies
   issued on or after January 1, 2015, and (ii) policies issued prior to January
   1, 2015, if risk pertaining to such pre-2015 policies is ceded in connection
   with the treaty, in whole or in part, on or after January 1, 2015.

   3. This subsection may require the ceding insurer, in calculating the amounts
   or forms of security required to be held under regulations promulgated under
   this authority, to use the Valuation Manual adopted by the NAIC under
   subdivision B 1 of &#xA7; 38.2-1379, including all amendments adopted by the
   NAIC and in effect on the date as of which the calculation is made, to the
   extent applicable.

   4. This subsection shall not apply to cessions to an assuming insurer that:
   				a. Is certified in the Commonwealth;				b. Meets the conditions set forth
   in subsection E of &#xA7; 38.2-1316.2; or				c. Maintains at least $250
   million in capital and surplus when determined in accordance with the NAIC
   Accounting Practices and Procedures Manual, including all amendments thereto
   adopted by the NAIC, excluding the impact of any permitted or prescribed
   practices, and is (i) licensed in at least 26 states or (ii) licensed in at
   least 10 states and licensed or accredited in a total of at least 35 states.

C. The authority to adopt regulations pursuant to subsection B does not limit
the Commission&#8217;s general authority to adopt regulations pursuant to
subsection A.

HISTORY: 1991, c. 264; 2017, c. 477; 2020, c. 208.