§ 38.2-3113.1. Modified guaranteed life insurance and modified guaranteedannuities; separate accounts; authority to issue; statements required;regulations to be issued; approval expenses.
A. For purposes of this section, "modified guaranteed contracts" meansmodified guaranteed life insurance or modified guaranteed annuity contracts.The provisions of this section apply only to such contracts.
B. A domestic insurer that issues modified guaranteed contracts may establishone or more separate accounts in connection with these types of contracts.All amounts received by the insurer to provide benefits under contracts forwhich separate accounts have been established shall be added to theappropriate separate account. Unless provided otherwise in the contract andapproved by the Commission in its discretion, the assets of any such separateaccount shall be chargeable with liabilities arising out of any otherbusiness the insurer may conduct.
C. A foreign or alien insurer licensed to do business in this Commonwealthmay be licensed to deliver or issue for delivery modified guaranteedcontracts in this Commonwealth only if authorized to issue such contractsunder the laws of its domicile.
D. No domestic, foreign, or alien insurer shall be licensed to deliver orissue for delivery modified guaranteed contracts in this Commonwealth, untilthe insurer has satisfied the Commission that its condition and methods ofoperation in connection with the issuance of modified guaranteed contractswill not render its operation hazardous to the public or to its policyholdersin this Commonwealth. In determining the qualifications of an insurer todeliver or issue for delivery such modified guaranteed contracts in thisCommonwealth, the Commission shall consider, but shall not be limited toconsidering, the following: (i) the history and financial condition of theinsurer; (ii) the character, responsibility, and general fitness of theofficers and directors of the insurer; and (iii) in the case of a foreign oralien insurer, whether the regulation provided by the laws of its domicileprovides a degree of protection to policyholders and the public substantiallyequal to that provided by this section and any rules and regulations issuedby the Commission.
E. Each insurer that has established any separate accounts in connection withmodified guaranteed contracts, and delivers or issues for delivery modifiedguaranteed contracts in this Commonwealth shall file with the Commission, inaddition to the annual statement required by § 38.2-1300, any other periodicor special reports the Commission prescribes.
F. Any modified guaranteed contract delivered or issued for delivery in thisCommonwealth, and any certificate evidencing nonforfeiture benefits that varyaccording to a market-value adjustment formula issued pursuant to any lifeinsurance or annuity contract issued on a group basis shall (i) contain, onits first page, a prominent statement that the nonforfeiture values mayincrease or decrease, based on the market-value adjustment formula in thecontract, and (ii) for modified guaranteed life insurance only, beaccompanied by a written disclosure to the purchaser of the policy's"interest adjusted net cost index" in compliance with regulations or formsapproved by the Commission.
G. The Commission may promulgate reasonable regulations applicable tomodified guaranteed contracts and to any separate accounts that may beestablished in connection with such contracts.
H. Reasonable actuarial expenses incurred in connection with approval of amodified contract shall be paid by the person seeking approval of such acontract.
§ 38.2-3113.1. Modified guaranteed life insurance and modified guaranteedannuities; separate accounts; authority to issue; statements required;regulations to be issued; approval expenses.
A. For purposes of this section, "modified guaranteed contracts" meansmodified guaranteed life insurance or modified guaranteed annuity contracts.The provisions of this section apply only to such contracts.
B. A domestic insurer that issues modified guaranteed contracts may establishone or more separate accounts in connection with these types of contracts.All amounts received by the insurer to provide benefits under contracts forwhich separate accounts have been established shall be added to theappropriate separate account. Unless provided otherwise in the contract andapproved by the Commission in its discretion, the assets of any such separateaccount shall be chargeable with liabilities arising out of any otherbusiness the insurer may conduct.
C. A foreign or alien insurer licensed to do business in this Commonwealthmay be licensed to deliver or issue for delivery modified guaranteedcontracts in this Commonwealth only if authorized to issue such contractsunder the laws of its domicile.
D. No domestic, foreign, or alien insurer shall be licensed to deliver orissue for delivery modified guaranteed contracts in this Commonwealth, untilthe insurer has satisfied the Commission that its condition and methods ofoperation in connection with the issuance of modified guaranteed contractswill not render its operation hazardous to the public or to its policyholdersin this Commonwealth. In determining the qualifications of an insurer todeliver or issue for delivery such modified guaranteed contracts in thisCommonwealth, the Commission shall consider, but shall not be limited toconsidering, the following: (i) the history and financial condition of theinsurer; (ii) the character, responsibility, and general fitness of theofficers and directors of the insurer; and (iii) in the case of a foreign oralien insurer, whether the regulation provided by the laws of its domicileprovides a degree of protection to policyholders and the public substantiallyequal to that provided by this section and any rules and regulations issuedby the Commission.
E. Each insurer that has established any separate accounts in connection withmodified guaranteed contracts, and delivers or issues for delivery modifiedguaranteed contracts in this Commonwealth shall file with the Commission, inaddition to the annual statement required by § 38.2-1300, any other periodicor special reports the Commission prescribes.
F. Any modified guaranteed contract delivered or issued for delivery in thisCommonwealth, and any certificate evidencing nonforfeiture benefits that varyaccording to a market-value adjustment formula issued pursuant to any lifeinsurance or annuity contract issued on a group basis shall (i) contain, onits first page, a prominent statement that the nonforfeiture values mayincrease or decrease, based on the market-value adjustment formula in thecontract, and (ii) for modified guaranteed life insurance only, beaccompanied by a written disclosure to the purchaser of the policy's"interest adjusted net cost index" in compliance with regulations or formsapproved by the Commission.
G. The Commission may promulgate reasonable regulations applicable tomodified guaranteed contracts and to any separate accounts that may beestablished in connection with such contracts.
H. Reasonable actuarial expenses incurred in connection with approval of amodified contract shall be paid by the person seeking approval of such acontract.
§ 38.2-3113.1. Modified guaranteed life insurance and modified guaranteedannuities; separate accounts; authority to issue; statements required;regulations to be issued; approval expenses.
A. For purposes of this section, "modified guaranteed contracts" meansmodified guaranteed life insurance or modified guaranteed annuity contracts.The provisions of this section apply only to such contracts.
B. A domestic insurer that issues modified guaranteed contracts may establishone or more separate accounts in connection with these types of contracts.All amounts received by the insurer to provide benefits under contracts forwhich separate accounts have been established shall be added to theappropriate separate account. Unless provided otherwise in the contract andapproved by the Commission in its discretion, the assets of any such separateaccount shall be chargeable with liabilities arising out of any otherbusiness the insurer may conduct.
C. A foreign or alien insurer licensed to do business in this Commonwealthmay be licensed to deliver or issue for delivery modified guaranteedcontracts in this Commonwealth only if authorized to issue such contractsunder the laws of its domicile.
D. No domestic, foreign, or alien insurer shall be licensed to deliver orissue for delivery modified guaranteed contracts in this Commonwealth, untilthe insurer has satisfied the Commission that its condition and methods ofoperation in connection with the issuance of modified guaranteed contractswill not render its operation hazardous to the public or to its policyholdersin this Commonwealth. In determining the qualifications of an insurer todeliver or issue for delivery such modified guaranteed contracts in thisCommonwealth, the Commission shall consider, but shall not be limited toconsidering, the following: (i) the history and financial condition of theinsurer; (ii) the character, responsibility, and general fitness of theofficers and directors of the insurer; and (iii) in the case of a foreign oralien insurer, whether the regulation provided by the laws of its domicileprovides a degree of protection to policyholders and the public substantiallyequal to that provided by this section and any rules and regulations issuedby the Commission.
E. Each insurer that has established any separate accounts in connection withmodified guaranteed contracts, and delivers or issues for delivery modifiedguaranteed contracts in this Commonwealth shall file with the Commission, inaddition to the annual statement required by § 38.2-1300, any other periodicor special reports the Commission prescribes.
F. Any modified guaranteed contract delivered or issued for delivery in thisCommonwealth, and any certificate evidencing nonforfeiture benefits that varyaccording to a market-value adjustment formula issued pursuant to any lifeinsurance or annuity contract issued on a group basis shall (i) contain, onits first page, a prominent statement that the nonforfeiture values mayincrease or decrease, based on the market-value adjustment formula in thecontract, and (ii) for modified guaranteed life insurance only, beaccompanied by a written disclosure to the purchaser of the policy's"interest adjusted net cost index" in compliance with regulations or formsapproved by the Commission.
G. The Commission may promulgate reasonable regulations applicable tomodified guaranteed contracts and to any separate accounts that may beestablished in connection with such contracts.
H. Reasonable actuarial expenses incurred in connection with approval of amodified contract shall be paid by the person seeking approval of such acontract.
