{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/38.2-1379.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/38.2-1379.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/38.2-1379.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/38.2-1379.html"}],"law_id":86866,"edition_id":1,"section_id":86866,"structure_id":14262,"section_number":"38.2-1379","catch_line":"Valuation manual for policies issued on or after the operative date of the valuation manual","history":"2014, c. 571.","full_text":"A\n\nFor policies issued on or after the operative date of the valuation manual, the standard prescribed in the valuation manual is the minimum standard of valuation required under subsection B of § 38.2-1366, except as provided under subsection E or subsection G.B\n\nThe operative date of the valuation manual is January 1 of the first calendar year following the first July 1 as of which all of the following have occurred:1\n\nThe valuation manual has been adopted by the NAIC by an affirmative vote of at least 42 members, or three-fourths of the members voting, whichever is greater.2\n\nThe Standard Valuation Law, as amended by the NAIC in 2009, or legislation including substantially similar terms and provisions, has been enacted by states representing greater than 75 percent of the direct premiums written as reported in the following annual statements submitted for 2008: life, accident and health annual statements; health annual statements; or fraternal annual statements.3\n\nThe Standard Valuation Law, as amended by the NAIC in 2009, or legislation including substantially similar terms and provisions, has been enacted by at least 42 of the following 55 jurisdictions: The 50 states of the United States, American Samoa, the American Virgin Islands, the District of Columbia, Guam, and Puerto Rico.C\n\nUnless a change in the valuation manual specifies a later effective date, changes to the valuation manual shall be effective on January 1 following the date when the following have occurred:1\n\nThe change to the valuation manual has been adopted by the NAIC by an affirmative vote representing:\n\t\t\t\ta. At least three-quarters of the members of the NAIC voting, but not less than a majority of the total membership; and\n\t\t\t\tb. Members of the NAIC representing jurisdictions totaling greater than 75 percent of the direct premiums written as reported in the following annual statements most recently available prior to the vote in subdivision C 1 a: life, accident and health annual statements, health annual statements, or fraternal annual statements; or2\n\nThe valuation manual becomes effective pursuant to an order of regulation adopted by the Commission.D\n\nThe valuation manual shall specify all of the following:1\n\nMinimum valuation standards for and definitions of the policies or contracts subject to subsection B of § 38.2-1366. Such minimum valuation standards shall be:\n\t\t\t\ta. The Commissioners reserve valuation method for life insurance contracts, other than annuity contracts, subject to subsection B of § 38.2-1366;\n\t\t\t\tb. The Commissioners annuity reserve valuation method for annuity contracts subject to subsection B of § 38.2-1366; and\n\t\t\t\tc. Minimum reserves for all other policies or contracts subject to subsection B of § 38.2-1366.2\n\nWhich policies or contracts or types of policies or contracts are subject to the requirements of a principle-based valuation in subsection A of § 38.2-1380 and the minimum valuation standards consistent with those requirements;3\n\nFor policies and contracts subject to a principle-based valuation under § 38.2-1380:\n\t\t\t\ta. Requirements for the format of reports to the commissioner under subdivision B 3 of § 38.2-1380 and which reports shall include information necessary to determine if the valuation is appropriate and in compliance with this article.\n\t\t\t\tb. Assumptions shall be prescribed for risks over which the company does not have significant control or influence.\n\t\t\t\tc. Procedures for corporate governance and oversight of the actuarial function, and a process for appropriate waiver or modification of such procedures.4\n\nFor policies not subject to a principle-based valuation under § 38.2-1380, the minimum valuation standard shall either:\n\t\t\t\ta. Be consistent with the minimum standard of valuation prior to the operative date of the valuation manual; or\n\t\t\t\tb. Develop reserves that quantify the benefits and guarantees, and the funding, associated with the contracts and their risks at a level of conservatism that reflects conditions that include unfavorable events that have a reasonable probability of occurring.5\n\nOther requirements, including those relating to reserve methods, models for measuring risk, generation of economic scenarios, assumptions, margins, use of company experience, risk measurement, disclosure, certifications, reports, actuarial opinions and memorandums, transition rules, and internal controls; and6\n\nThe data and form of the data required under § 38.2-1381 and to whom the data is required to be submitted.\n\t\t\t\tThe valuation manual may specify other requirements, including those for data analyses and reporting of analyses.E\n\nIf a specific valuation requirement is absent or if a specific valuation requirement in the valuation manual is not, in the opinion of the Commission, in compliance with this article, then the insurer shall, with respect to such requirements, comply with minimum valuation standards prescribed by the Commission by regulation.F\n\nThe Commission may engage a qualified actuary, at the expense of the insurer, to perform an actuarial examination of the insurer and opine on the appropriateness of any reserve assumption or method used by the insurer, or to review and opine on an insurer’s compliance with any requirement set forth in this article. The Commission may rely upon the opinion, regarding provisions contained within this article, of a qualified actuary engaged by the Commissioner of another state, district, or territory of the United States. As used in this subsection, the term “engage” includes employment and contracting.G\n\nThe Commission may require an insurer to change any assumption or method that in the opinion of the Commission is necessary in order to comply with the requirements of the valuation manual or this article; and the insurer shall adjust the reserves as required by the Commission. The Commission may take other disciplinary action as permitted pursuant to § 38.2-219.","order_by":null,"text":{"0":{"id":310989,"text":"For policies issued on or after the operative date of the valuation manual, the standard prescribed in the valuation manual is the minimum standard of valuation required under subsection B of § 38.2-1366, except as provided under subsection E or subsection G.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":310990,"text":"The operative date of the valuation manual is January 1 of the first calendar year following the first July 1 as of which all of the following have occurred:","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"B1"},"2":{"id":310991,"text":"The valuation manual has been adopted by the NAIC by an affirmative vote of at least 42 members, or three-fourths of the members voting, whichever is greater.","type":"section","prefixes":["B","1"],"prefix":"1","entire_prefix":"B1","prefix_anchor":"B1","level":2,"prior_prefix":"B","next_prefix":"B2"},"3":{"id":310992,"text":"The Standard Valuation Law, as amended by the NAIC in 2009, or legislation including substantially similar terms and provisions, has been enacted by states representing greater than 75 percent of the direct premiums written as reported in the following annual statements submitted for 2008: life, accident and health annual statements; health annual statements; or fraternal annual statements.","type":"section","prefixes":["B","2"],"prefix":"2","entire_prefix":"B2","prefix_anchor":"B2","level":2,"prior_prefix":"B1","next_prefix":"B3"},"4":{"id":310993,"text":"The Standard Valuation Law, as amended by the NAIC in 2009, or legislation including substantially similar terms and provisions, has been enacted by at least 42 of the following 55 jurisdictions: The 50 states of the United States, American Samoa, the American Virgin Islands, the District of Columbia, Guam, and Puerto Rico.","type":"section","prefixes":["B","3"],"prefix":"3","entire_prefix":"B3","prefix_anchor":"B3","level":2,"prior_prefix":"B2","next_prefix":"C"},"5":{"id":310994,"text":"Unless a change in the valuation manual specifies a later effective date, changes to the valuation manual shall be effective on January 1 following the date when the following have occurred:","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B3","next_prefix":"C1"},"6":{"id":310995,"text":"The change to the valuation manual has been adopted by the NAIC by an affirmative vote representing:\n\t\t\t\ta. At least three-quarters of the members of the NAIC voting, but not less than a majority of the total membership; and\n\t\t\t\tb. Members of the NAIC representing jurisdictions totaling greater than 75 percent of the direct premiums written as reported in the following annual statements most recently available prior to the vote in subdivision C 1 a: life, accident and health annual statements, health annual statements, or fraternal annual statements; or","type":"section","prefixes":["C","1"],"prefix":"1","entire_prefix":"C1","prefix_anchor":"C1","level":2,"prior_prefix":"C","next_prefix":"C2"},"7":{"id":310996,"text":"The valuation manual becomes effective pursuant to an order of regulation adopted by the Commission.","type":"section","prefixes":["C","2"],"prefix":"2","entire_prefix":"C2","prefix_anchor":"C2","level":2,"prior_prefix":"C1","next_prefix":"D"},"8":{"id":310997,"text":"The valuation manual shall specify all of the following:","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C2","next_prefix":"D1"},"9":{"id":310998,"text":"Minimum valuation standards for and definitions of the policies or contracts subject to subsection B of § 38.2-1366. Such minimum valuation standards shall be:\n\t\t\t\ta. The Commissioners reserve valuation method for life insurance contracts, other than annuity contracts, subject to subsection B of § 38.2-1366;\n\t\t\t\tb. The Commissioners annuity reserve valuation method for annuity contracts subject to subsection B of § 38.2-1366; and\n\t\t\t\tc. Minimum reserves for all other policies or contracts subject to subsection B of § 38.2-1366.","type":"section","prefixes":["D","1"],"prefix":"1","entire_prefix":"D1","prefix_anchor":"D1","level":2,"prior_prefix":"D","next_prefix":"D2"},"10":{"id":310999,"text":"Which policies or contracts or types of policies or contracts are subject to the requirements of a principle-based valuation in subsection A of § 38.2-1380 and the minimum valuation standards consistent with those requirements;","type":"section","prefixes":["D","2"],"prefix":"2","entire_prefix":"D2","prefix_anchor":"D2","level":2,"prior_prefix":"D1","next_prefix":"D3"},"11":{"id":311000,"text":"For policies and contracts subject to a principle-based valuation under § 38.2-1380:\n\t\t\t\ta. Requirements for the format of reports to the commissioner under subdivision B 3 of § 38.2-1380 and which reports shall include information necessary to determine if the valuation is appropriate and in compliance with this article.\n\t\t\t\tb. Assumptions shall be prescribed for risks over which the company does not have significant control or influence.\n\t\t\t\tc. Procedures for corporate governance and oversight of the actuarial function, and a process for appropriate waiver or modification of such procedures.","type":"section","prefixes":["D","3"],"prefix":"3","entire_prefix":"D3","prefix_anchor":"D3","level":2,"prior_prefix":"D2","next_prefix":"D4"},"12":{"id":311001,"text":"For policies not subject to a principle-based valuation under § 38.2-1380, the minimum valuation standard shall either:\n\t\t\t\ta. Be consistent with the minimum standard of valuation prior to the operative date of the valuation manual; or\n\t\t\t\tb. Develop reserves that quantify the benefits and guarantees, and the funding, associated with the contracts and their risks at a level of conservatism that reflects conditions that include unfavorable events that have a reasonable probability of occurring.","type":"section","prefixes":["D","4"],"prefix":"4","entire_prefix":"D4","prefix_anchor":"D4","level":2,"prior_prefix":"D3","next_prefix":"D5"},"13":{"id":311002,"text":"Other requirements, including those relating to reserve methods, models for measuring risk, generation of economic scenarios, assumptions, margins, use of company experience, risk measurement, disclosure, certifications, reports, actuarial opinions and memorandums, transition rules, and internal controls; and","type":"section","prefixes":["D","5"],"prefix":"5","entire_prefix":"D5","prefix_anchor":"D5","level":2,"prior_prefix":"D4","next_prefix":"D6"},"14":{"id":311003,"text":"The data and form of the data required under § 38.2-1381 and to whom the data is required to be submitted.\n\t\t\t\tThe valuation manual may specify other requirements, including those for data analyses and reporting of analyses.","type":"section","prefixes":["D","6"],"prefix":"6","entire_prefix":"D6","prefix_anchor":"D6","level":2,"prior_prefix":"D5","next_prefix":"E"},"15":{"id":311004,"text":"If a specific valuation requirement is absent or if a specific valuation requirement in the valuation manual is not, in the opinion of the Commission, in compliance with this article, then the insurer shall, with respect to such requirements, comply with minimum valuation standards prescribed by the Commission by regulation.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D6","next_prefix":"F"},"16":{"id":311005,"text":"The Commission may engage a qualified actuary, at the expense of the insurer, to perform an actuarial examination of the insurer and opine on the appropriateness of any reserve assumption or method used by the insurer, or to review and opine on an insurer’s compliance with any requirement set forth in this article. The Commission may rely upon the opinion, regarding provisions contained within this article, of a qualified actuary engaged by the Commissioner of another state, district, or territory of the United States. As used in this subsection, the term “engage” includes employment and contracting.","type":"section","prefixes":["F"],"prefix":"F","entire_prefix":"F","prefix_anchor":"F","level":1,"prior_prefix":"E","next_prefix":"G"},"17":{"id":311006,"text":"The Commission may require an insurer to change any assumption or method that in the opinion of the Commission is necessary in order to comply with the requirements of the valuation manual or this article; and the insurer shall adjust the reserves as required by the Commission. The Commission may take other disciplinary action as permitted pursuant to § 38.2-219.","type":"section","prefixes":["G"],"prefix":"G","entire_prefix":"G","prefix_anchor":"G","level":1,"prior_prefix":"F"}},"ancestry":[{"id":14262,"edition_id":1,"name":"Standard Valuation","identifier":"10","label":"article","depth":3,"order_by":1,"parent_id":13289,"metadata":{},"date_created":"2026-06-26 03:47:30","date_modified":"2026-06-26 03:47:30","permalink":{"id":211387,"object_type":"structure","relational_id":14262,"identifier":"10","token":"38.2\/13\/10","url":"\/38.2\/13\/10\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13289,"edition_id":1,"name":"Reports, Reserves and Examinations, Insurance Holding Companies, Reinsurance Intermediaries, and Managing General Agents","identifier":"13","label":"chapter","depth":2,"order_by":1,"parent_id":12698,"metadata":{},"date_created":"2026-06-26 03:44:35","date_modified":"2026-06-26 03:44:35","permalink":{"id":211347,"object_type":"structure","relational_id":13289,"identifier":"13","token":"38.2\/13","url":"\/38.2\/13\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12698,"edition_id":1,"name":"Insurance","identifier":"38.2","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:49","date_modified":"2026-06-26 03:43:49","permalink":{"id":210661,"object_type":"structure","relational_id":12698,"identifier":"38.2","token":"38.2","url":"\/38.2\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":84586,"structure_id":14262,"section_number":"38.2-1365","catch_line":"Definitions","url":"\/38.2-1365\/","token":"38.2\/13\/10\/38.2-1365","metadata":false},{"id":80617,"structure_id":14262,"section_number":"38.2-1366","catch_line":"Reserve valuation","url":"\/38.2-1366\/","token":"38.2\/13\/10\/38.2-1366","metadata":false},{"id":70162,"structure_id":14262,"section_number":"38.2-1367","catch_line":"Actuarial opinion of reserves","url":"\/38.2-1367\/","token":"38.2\/13\/10\/38.2-1367","metadata":false},{"id":67907,"structure_id":14262,"section_number":"38.2-1368","catch_line":"Minimum valuation standard for policies issued prior to certain dates","url":"\/38.2-1368\/","token":"38.2\/13\/10\/38.2-1368","metadata":false},{"id":66783,"structure_id":14262,"section_number":"38.2-1369","catch_line":"Computation of minimum standard","url":"\/38.2-1369\/","token":"38.2\/13\/10\/38.2-1369","metadata":false},{"id":86779,"structure_id":14262,"section_number":"38.2-1370","catch_line":"Computation of minimum standard for annuities","url":"\/38.2-1370\/","token":"38.2\/13\/10\/38.2-1370","metadata":false},{"id":76954,"structure_id":14262,"section_number":"38.2-1371","catch_line":"Computation of minimum standard by calendar year of issue","url":"\/38.2-1371\/","token":"38.2\/13\/10\/38.2-1371","metadata":false},{"id":72346,"structure_id":14262,"section_number":"38.2-1372","catch_line":"Reserve valuation method; life insurance and endowment benefits","url":"\/38.2-1372\/","token":"38.2\/13\/10\/38.2-1372","metadata":false},{"id":76847,"structure_id":14262,"section_number":"38.2-1373","catch_line":"Reserve valuation method; annuity and pure endowment benefits","url":"\/38.2-1373\/","token":"38.2\/13\/10\/38.2-1373","metadata":false},{"id":77501,"structure_id":14262,"section_number":"38.2-1374","catch_line":"Minimum reserves","url":"\/38.2-1374\/","token":"38.2\/13\/10\/38.2-1374","metadata":false},{"id":84837,"structure_id":14262,"section_number":"38.2-1375","catch_line":"Optional reserve calculation","url":"\/38.2-1375\/","token":"38.2\/13\/10\/38.2-1375","metadata":false},{"id":55507,"structure_id":14262,"section_number":"38.2-1376","catch_line":"Reserve calculation; valuation net premium exceeding the gross premium charged","url":"\/38.2-1376\/","token":"38.2\/13\/10\/38.2-1376","metadata":false},{"id":76132,"structure_id":14262,"section_number":"38.2-1377","catch_line":"Reserve calculation; indeterminate premium plans","url":"\/38.2-1377\/","token":"38.2\/13\/10\/38.2-1377","metadata":false},{"id":71532,"structure_id":14262,"section_number":"38.2-1378","catch_line":"Minimum standard for accident and health insurance contracts","url":"\/38.2-1378\/","token":"38.2\/13\/10\/38.2-1378","metadata":false},{"id":86866,"structure_id":14262,"section_number":"38.2-1379","catch_line":"Valuation manual for policies issued on or after the operative date of the valuation manual","url":"\/38.2-1379\/","token":"38.2\/13\/10\/38.2-1379","metadata":false},{"id":82780,"structure_id":14262,"section_number":"38.2-1380","catch_line":"Requirements of a principle-based valuation","url":"\/38.2-1380\/","token":"38.2\/13\/10\/38.2-1380","metadata":false},{"id":56910,"structure_id":14262,"section_number":"38.2-1381","catch_line":"Experience reporting for policies in force on or after the operative date of the valuation manual","url":"\/38.2-1381\/","token":"38.2\/13\/10\/38.2-1381","metadata":false},{"id":67564,"structure_id":14262,"section_number":"38.2-1382","catch_line":"Confidentiality","url":"\/38.2-1382\/","token":"38.2\/13\/10\/38.2-1382","metadata":false},{"id":76707,"structure_id":14262,"section_number":"38.2-1383","catch_line":"Single state exemption","url":"\/38.2-1383\/","token":"38.2\/13\/10\/38.2-1383","metadata":false},{"id":63558,"structure_id":14262,"section_number":"38.2-1384","catch_line":"Assessment against insurers whose policies are valued","url":"\/38.2-1384\/","token":"38.2\/13\/10\/38.2-1384","metadata":false},{"id":65928,"structure_id":14262,"section_number":"38.2-1385","catch_line":"Article not applicable in certain cases","url":"\/38.2-1385\/","token":"38.2\/13\/10\/38.2-1385","metadata":false}],"previous_section":{"id":71532,"structure_id":14262,"section_number":"38.2-1378","catch_line":"Minimum standard for accident and health insurance contracts","url":"\/38.2-1378\/","token":"38.2\/13\/10\/38.2-1378","metadata":false},"next_section":{"id":82780,"structure_id":14262,"section_number":"38.2-1380","catch_line":"Requirements of a principle-based valuation","url":"\/38.2-1380\/","token":"38.2\/13\/10\/38.2-1380","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-1379\/","history_text":"

This law was first created in 2014. The record of its establishment is cataloged in chapter 571<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year.<\/p>","references":[{"id":86117,"section_number":"38.2-1316.7","catch_line":"Rules and regulations","order_by":null,"url":"\/38.2-1316.7\/"},{"id":80617,"section_number":"38.2-1366","catch_line":"Reserve valuation","order_by":null,"url":"\/38.2-1366\/"},{"id":67564,"section_number":"38.2-1382","catch_line":"Confidentiality","order_by":null,"url":"\/38.2-1382\/"},{"id":76707,"section_number":"38.2-1383","catch_line":"Single state exemption","order_by":null,"url":"\/38.2-1383\/"}],"refers_to":[{"id":80617,"section_number":"38.2-1366","catch_line":"Reserve valuation","order_by":null,"url":"\/38.2-1366\/"},{"id":82780,"section_number":"38.2-1380","catch_line":"Requirements of a principle-based valuation","order_by":null,"url":"\/38.2-1380\/"},{"id":56910,"section_number":"38.2-1381","catch_line":"Experience reporting for policies in force on or after the operative date of the valuation manual","order_by":null,"url":"\/38.2-1381\/"},{"id":73928,"section_number":"38.2-219","catch_line":"Violations; procedure; cease and desist orders","order_by":null,"url":"\/38.2-219\/"}],"permalink":{"id":211445,"object_type":"law","relational_id":86866,"identifier":"38.2-1379","token":"38.2\/13\/10\/38.2-1379","url":"\/38.2-1379\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/38.2-1379\/","token":"38.2\/13\/10\/38.2-1379","dublin_core":{"Title":"Valuation manual for policies issued on or after the operative date of the valuation manual","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-1379","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> For policies issued on or after the operative date of the valuation manual<\/span>, the standard prescribed in the valuation manual<\/span> is the minimum standard of valuation required under subsection B of § 38.2-1366<\/a>, except as provided under subsection E or subsection G. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> The operative date of the valuation manual<\/span> is January 1 of the first calendar year following the first July 1 as of which all of the following have occurred: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> The valuation manual<\/span> has been adopted by the NAIC<\/span> by an affirmative vote of at least 42 members, or three-fourths of the members voting, whichever is greater. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> The Standard Valuation Law<\/span>, as amended by the NAIC<\/span> in 2009, or legislation including substantially similar terms and provisions, has been enacted by states<\/span> representing greater than 75 percent of the direct premiums written as reported in the following annual statements submitted for 2008: life, accident and health annual statements; health annual statements; or fraternal annual statements. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> The Standard Valuation Law<\/span>, as amended by the NAIC<\/span> in 2009, or legislation including substantially similar terms and provisions, has been enacted by at least 42 of the following 55 jurisdictions<\/span>: The 50 states<\/span> of the United States<\/span>, American Samoa, the American Virgin Islands, the District of Columbia, Guam, and Puerto Rico. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> Unless a change in the valuation manual<\/span> specifies a later effective date, changes to the valuation manual<\/span> shall be effective on January 1 following the date when the following have occurred: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> The change to the valuation manual<\/span> has been adopted by the NAIC<\/span> by an affirmative vote representing:\n\t\t\t\ta. At least three-quarters of the members of the NAIC<\/span> voting, but not less than a majority of the total membership; and\n\t\t\t\tb. Members of the NAIC<\/span> representing jurisdictions<\/span> totaling greater than 75 percent of the direct premiums written as reported in the following annual statements most recently available prior to the vote in subdivision C 1 a: life, accident and health annual statements, health annual statements, or fraternal annual statements; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> The valuation manual<\/span> becomes effective pursuant to an order<\/span> of regulation adopted by the Commission<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> The valuation manual<\/span> shall specify all of the following: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Minimum valuation standards for and definitions of the policies or contracts subject to subsection B of § 38.2-1366<\/a>. Such minimum valuation standards shall be:\n\t\t\t\ta. The Commissioners<\/span> reserve valuation method for life insurance contracts<\/span>, other than annuity contracts, subject to subsection B of § 38.2-1366<\/a>;\n\t\t\t\tb. The Commissioners<\/span> annuity reserve valuation method for annuity contracts subject to subsection B of § 38.2-1366<\/a>; and\n\t\t\t\tc. Minimum reserves for all other policies or contracts subject to subsection B of § 38.2-1366<\/a>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Which policies or contracts or types of policies or contracts are subject to the requirements of a principle-based valuation<\/span> in subsection A of § 38.2-1380<\/a> and the minimum valuation standards consistent with those requirements; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> For policies and contracts subject to a principle-based valuation<\/span> under § 38.2-1380<\/a>:\n\t\t\t\ta. Requirements for the format of reports to the commissioner<\/span> under subdivision B 3 of § 38.2-1380<\/a> and which reports shall include information necessary to determine if the valuation is appropriate and in compliance with this article.\n\t\t\t\tb. Assumptions shall be prescribed for risks over which the company<\/span> does not have significant control or influence.\n\t\t\t\tc. Procedures for corporate governance and oversight of the actuarial function, and a process for appropriate waiver<\/span> or modification of such procedures. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> For policies not subject to a principle-based valuation<\/span> under § 38.2-1380<\/a>, the minimum valuation standard shall either:\n\t\t\t\ta. Be consistent with the minimum standard of valuation prior to the operative date of the valuation manual<\/span>; or\n\t\t\t\tb. Develop reserves that quantify the benefits and guarantees, and the funding, associated with the contracts and their risks at a level of conservatism that reflects conditions that include unfavorable events that have a reasonable probability of occurring. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> Other requirements, including those relating to reserve methods, models for measuring risk, generation of economic scenarios, assumptions, margins, use of company<\/span> experience, risk measurement, disclosure, certifications, reports, actuarial opinions<\/span> and memorandums<\/span>, transition rules, and internal controls; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

6.<\/span> The data and form of the data required under § 38.2-1381<\/a> and to whom the data is required to be submitted.\n\t\t\t\tThe valuation manual<\/span> may specify other requirements, including those for data analyses and reporting of analyses. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> If a specific valuation requirement is absent or if a specific valuation requirement in the valuation manual<\/span> is not, in the opinion<\/span> of the Commission<\/span>, in compliance with this article, then the insurer<\/span> shall, with respect to such requirements, comply with minimum valuation standards prescribed by the Commission<\/span> by regulation. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

F.<\/span> The Commission<\/span> may engage<\/span> a qualified actuary<\/span>, at the expense of the insurer<\/span>, to perform an actuarial examination of the insurer<\/span> and opine on the appropriateness of any reserve assumption or method used by the insurer<\/span>, or to review and opine on an insurer<\/span>’s compliance with any requirement set forth in this article. The Commission<\/span> may rely upon the opinion<\/span>, regarding provisions contained within this article, of a qualified actuary<\/span> engaged by the Commissioner<\/span> of another state<\/span>, district, or territory of the United States<\/span>. As used in this subsection, the term “engage<\/span>” includes employment and contracting. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

G.<\/span> The Commission<\/span> may require an insurer<\/span> to change any assumption or method that in the opinion<\/span> of the Commission<\/span> is necessary in order<\/span> to comply with the requirements of the valuation manual<\/span> or this article; and the insurer<\/span> shall adjust the reserves as required by the Commission<\/span>. The Commission<\/span> may take other disciplinary action as permitted pursuant to § 38.2-219<\/a>. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nVALUATION MANUAL FOR POLICIES ISSUED ON OR AFTER THE OPERATIVE DATE OF THE\nVALUATION MANUAL (\u00a7 38.2-1379)\n\nA. For policies issued on or after the operative date of the valuation manual,\nthe standard prescribed in the valuation manual is the minimum standard of\nvaluation required under subsection B of § 38.2-1366, except as provided\nunder subsection E or subsection G.\n\nB. The operative date of the valuation manual is January 1 of the first calendar\nyear following the first July 1 as of which all of the following have occurred:\n\n 1. The valuation manual has been adopted by the NAIC by an affirmative vote of\n at least 42 members, or three-fourths of the members voting, whichever is\n greater.\n\n 2. The Standard Valuation Law, as amended by the NAIC in 2009, or legislation\n including substantially similar terms and provisions, has been enacted by\n states representing greater than 75 percent of the direct premiums written as\n reported in the following annual statements submitted for 2008: life, accident\n and health annual statements; health annual statements; or fraternal annual\n statements.\n\n 3. The Standard Valuation Law, as amended by the NAIC in 2009, or legislation\n including substantially similar terms and provisions, has been enacted by at\n least 42 of the following 55 jurisdictions: The 50 states of the United\n States, American Samoa, the American Virgin Islands, the District of Columbia,\n Guam, and Puerto Rico.\n\nC. Unless a change in the valuation manual specifies a later effective date,\nchanges to the valuation manual shall be effective on January 1 following the\ndate when the following have occurred:\n\n 1. The change to the valuation manual has been adopted by the NAIC by an\n affirmative vote representing:\n \t\t\t\ta. At least three-quarters of the members of the NAIC voting, but not less\n than a majority of the total membership; and\n \t\t\t\tb. Members of the NAIC representing jurisdictions totaling greater than 75\n percent of the direct premiums written as reported in the following annual\n statements most recently available prior to the vote in subdivision C 1 a:\n life, accident and health annual statements, health annual statements, or\n fraternal annual statements; or\n\n 2. The valuation manual becomes effective pursuant to an order of regulation\n adopted by the Commission.\n\nD. The valuation manual shall specify all of the following:\n\n 1. Minimum valuation standards for and definitions of the policies or\n contracts subject to subsection B of § 38.2-1366. Such minimum valuation\n standards shall be:\n \t\t\t\ta. The Commissioners reserve valuation method for life insurance\n contracts, other than annuity contracts, subject to subsection B of §\n 38.2-1366;\n \t\t\t\tb. The Commissioners annuity reserve valuation method for annuity\n contracts subject to subsection B of § 38.2-1366; and\n \t\t\t\tc. Minimum reserves for all other policies or contracts subject to\n subsection B of § 38.2-1366.\n\n 2. Which policies or contracts or types of policies or contracts are subject\n to the requirements of a principle-based valuation in subsection A of §\n 38.2-1380 and the minimum valuation standards consistent with those\n requirements;\n\n 3. For policies and contracts subject to a principle-based valuation under\n § 38.2-1380:\n \t\t\t\ta. Requirements for the format of reports to the commissioner under\n subdivision B 3 of § 38.2-1380 and which reports shall include\n information necessary to determine if the valuation is appropriate and in\n compliance with this article.\n \t\t\t\tb. Assumptions shall be prescribed for risks over which the company does\n not have significant control or influence.\n \t\t\t\tc. Procedures for corporate governance and oversight of the actuarial\n function, and a process for appropriate waiver or modification of such\n procedures.\n\n 4. For policies not subject to a principle-based valuation under §\n 38.2-1380, the minimum valuation standard shall either:\n \t\t\t\ta. Be consistent with the minimum standard of valuation prior to the\n operative date of the valuation manual; or\n \t\t\t\tb. Develop reserves that quantify the benefits and guarantees, and the\n funding, associated with the contracts and their risks at a level of\n conservatism that reflects conditions that include unfavorable events that\n have a reasonable probability of occurring.\n\n 5. Other requirements, including those relating to reserve methods, models for\n measuring risk, generation of economic scenarios, assumptions, margins, use of\n company experience, risk measurement, disclosure, certifications, reports,\n actuarial opinions and memorandums, transition rules, and internal controls;\n and\n\n 6. The data and form of the data required under § 38.2-1381 and to whom\n the data is required to be submitted.\n \t\t\t\tThe valuation manual may specify other requirements, including those for\n data analyses and reporting of analyses.\n\nE. If a specific valuation requirement is absent or if a specific valuation\nrequirement in the valuation manual is not, in the opinion of the Commission, in\ncompliance with this article, then the insurer shall, with respect to such\nrequirements, comply with minimum valuation standards prescribed by the\nCommission by regulation.\n\nF. The Commission may engage a qualified actuary, at the expense of the insurer,\nto perform an actuarial examination of the insurer and opine on the\nappropriateness of any reserve assumption or method used by the insurer, or to\nreview and opine on an insurer’s compliance with any requirement set forth\nin this article. The Commission may rely upon the opinion, regarding provisions\ncontained within this article, of a qualified actuary engaged by the\nCommissioner of another state, district, or territory of the United States. As\nused in this subsection, the term “engage” includes employment and\ncontracting.\n\nG. The Commission may require an insurer to change any assumption or method that\nin the opinion of the Commission is necessary in order to comply with the\nrequirements of the valuation manual or this article; and the insurer shall\nadjust the reserves as required by the Commission. The Commission may take other\ndisciplinary action as permitted pursuant to § 38.2-219.\n\nHISTORY: 2014, c. 571.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}