{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/38.2-1701.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/38.2-1701.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/38.2-1701.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/38.2-1701.html"}],"law_id":79730,"edition_id":1,"section_id":79730,"structure_id":14902,"section_number":"38.2-1701","catch_line":"Definitions","history":"1976, c. 330, \u00a7 38.1-482.19; 1980, c. 186; 1986, c. 562; 2010, c. 510; 2015, c. 710; 2018, c. 706.","full_text":"As used in this chapter:\n\t\t“Account” means any one of the two accounts created under \u00a7 38.2-1702.\n\t\t“Association” means the Virginia Life, Accident and Sickness Insurance Guaranty Association created under \u00a7 38.2-1702.\n\t\t“Authorized assessment” or the term “authorized” when used in the context of assessments means that a resolution by the board of directors has been passed whereby an assessment will be called immediately or in the future from member insurers for a specified amount. An assessment is authorized when the resolution is passed.\n\t\t“Benefit plan” means a specific employee, union, or association of natural persons benefit plan.\n\t\t“Called assessment” or the term “called” when used in the context of assessments means that a notice has been issued by the Association to member insurers requiring that an authorized assessment be paid within the time frame set forth within the notice. An authorized assessment becomes a called assessment when notice is mailed by the Association to member insurers.\n\t\t“Contractual obligation” means an obligation under a policy or contract or certificate under a group policy or contract, or portion thereof for which coverage is provided under \u00a7 38.2-1700.\n\t\t“Covered contract” or “covered policy” means a policy or contract or portion of a policy or contract for which coverage is provided under \u00a7 38.2-1700.\n\t\t“Extra-contractual claims” shall include, for example, claims relating to bad faith in the payment of claims, punitive damages, or attorney fees and costs.\n\t\t“Health benefit plan” means any hospital or medical expense policy or certificate, or health maintenance organization subscriber contract or any other similar health contract. “Health benefit plan” does not include:\n\n1\n\nAccident only insurance;2\n\nCredit insurance;3\n\nDental only insurance;4\n\nVision only insurance;5\n\nMedicare Supplement insurance;6\n\nBenefits for long-term care, home health care, community-based care, or any combination thereof;7\n\nDisability income insurance;8\n\nCoverage for on-site medical clinics; or9\n\nSpecified disease, hospital confinement indemnity, or limited benefit health insurance if the types of coverage do not provide coordination of benefits and are provided under separate policies or certificates.\n\t\t\t“Impaired insurer” means a member insurer considered by the Commission to be potentially unable to fulfill its contractual obligations.\n\t\t\t“Insolvent insurer” means a member insurer that is placed under an order of liquidation by a court of competent jurisdiction with a finding of insolvency.\n\t\t\t“Member insurer” means an insurer or health maintenance organization licensed to transact in the Commonwealth any class of insurance or health maintenance organization business to which this chapter applies under § 38.2-1700, including an insurer or health maintenance organization whose license to transact the business of insurance in the Commonwealth has been suspended, revoked, not renewed, or voluntarily withdrawn, but does not include cooperative nonprofit life benefit companies, mutual assessment life, accident and sickness insurance companies, burial societies, fraternal benefit societies, dental and optometric services plans, and health services plans not subject to this chapter pursuant to § 38.2-4213.\n\t\t\t“Moody’s Corporate Bond Yield Average” means the Monthly Average Corporates as published by Moody’s Investors Service, Inc., or any successor thereto.\n\t\t\t“Owner” of a policy or contract or “policyholder,” “policy owner,” and “contract owner” means the person who is identified as the legal owner under the terms of the policy or contract or who is otherwise vested with legal title to the policy or contract through a valid assignment completed in accordance with the terms of the policy or contract and properly recorded as the owner on the books of the member insurer. The terms “owner,” “contract owner,” “policyholder,” and “policy owner” do not include persons with a mere beneficial interest in a policy or contract.\n\t\t\t“Plan sponsor” means (i) the employer, in the case of a benefit plan established or maintained by a single employer; (ii) the employee organization in the case of a benefit plan established or maintained by an employee organization; or (iii) in the case of a benefit plan established or maintained by two or more employers or jointly by one or more employers and one or more employee organizations, the association, committee, joint board of trustees, or other similar group of representatives of the parties who establish or maintain the benefit plan.\n\t\t\t“Premiums” means amounts or considerations, by whatever name called, received on covered policies or contracts, less any returned premiums, considerations, and deposits and less dividends and experience credits. “Premiums” does not include amounts or considerations received for policies or contracts or for the portions of policies or contracts for which coverage is not provided under subsection C of § 38.2-1700 except that assessable premium shall not be reduced on account of subdivision C 2 of § 38.2-1700 relating to interest limitations and subdivision D 2 of § 38.2-1700 relating to limitations with respect to one individual, one participant, and one policy or contract owner. “Premiums” shall not include (i) premiums for coverage in excess of $5 million on an unallocated annuity contract covered under subdivisions D 2 d, e, and f of § 38.2-1700 or (ii) with respect to multiple nongroup policies of life insurance owned by one owner, whether the policy or contract owner is an individual, firm, corporation, or other person, and whether the persons insured are officers, managers, employees or other persons, premiums for coverage in excess of $5 million with respect to these policies or contracts, regardless of the number of policies or contracts held by the owner.\n\t\t\t“Principal place of business” of a plan sponsor or a person other than a natural person means the single state in which the natural persons who establish policy for the direction, control, and coordination of the operations of the entity as a whole primarily exercise that function, determined by the Association in its reasonable judgment by considering the following factors: (i) the state in which the primary executive and administrative headquarters of the entity is located; (ii) the state in which the principal office of the chief executive officer of the entity is located; (iii) the state in which the board of directors (or similar governing person or persons) of the entity conducts the majority of its meetings; (iv) the state from which the management of the overall operations of the entity is directed; and in the case of a benefit plan sponsored by affiliated companies comprising a consolidated corporation, the state in which the holding company or controlling affiliate has its principal place of business as determined using these factors. However, in the case of a plan sponsor, if more than 50 percent of the participants in the benefit plan are employed in a single state, that state shall be deemed to be the principal place of business of the plan sponsor. The principal place of business of a plan sponsor described in clause (iii) of the definition of plan sponsor in this section shall be deemed to be the principal place of business of the association, committee, joint board of trustees, or other similar group of representatives of the parties who establish or maintain the benefit plan that, in lieu of a specific or clear designation of a principal place of business, shall be deemed to be the principal place of business of the employer or employee organization that has the largest investment in the benefit plan in question.\n\t\t\t“Receivership court” means the court in the insolvent or impaired insurer’s state having jurisdiction over the conservation, rehabilitation, or liquidation of the member insurer.\n\t\t\t“Resident” means a person to whom a contractual obligation is owed and who resides in the Commonwealth on the date a member insurer becomes an impaired insurer or a court order is entered that determines a member insurer to be an insolvent insurer. A person may be a resident of only one state, which in the case of a person other than a natural person shall be its principal place of business. Citizens of the United States that are either (i) residents of foreign countries, or (ii) residents of United States possessions, territories, or protectorates that do not have an association similar to the Association, shall be deemed residents of the state of domicile of the member insurer that issued the policies or contracts.\n\t\t\t“Structured settlement annuity” means an annuity purchased in order to fund periodic payments for a plaintiff or other claimant in payment for or with respect to personal injury or sickness suffered by the plaintiff or other claimant.\n\t\t\t“Supplemental contract” means a written agreement entered into for the distribution of proceeds under a life, health, or annuity policy or contract.\n\t\t\t“Unallocated annuity contract” means an annuity contract or group annuity certificate that is not issued to and owned by an individual or a trust created by an individual for the benefit of one or more individuals, except to the extent of any annuity benefits guaranteed to an individual or such a trust by an insurer under the contract or certificate.","order_by":null,"text":{"0":{"id":285708,"text":"As used in this chapter:\n\t\t“Account” means any one of the two accounts created under \u00a7 38.2-1702.\n\t\t“Association” means the Virginia Life, Accident and Sickness Insurance Guaranty Association created under \u00a7 38.2-1702.\n\t\t“Authorized assessment” or the term “authorized” when used in the context of assessments means that a resolution by the board of directors has been passed whereby an assessment will be called immediately or in the future from member insurers for a specified amount. An assessment is authorized when the resolution is passed.\n\t\t“Benefit plan” means a specific employee, union, or association of natural persons benefit plan.\n\t\t“Called assessment” or the term “called” when used in the context of assessments means that a notice has been issued by the Association to member insurers requiring that an authorized assessment be paid within the time frame set forth within the notice. An authorized assessment becomes a called assessment when notice is mailed by the Association to member insurers.\n\t\t“Contractual obligation” means an obligation under a policy or contract or certificate under a group policy or contract, or portion thereof for which coverage is provided under \u00a7 38.2-1700.\n\t\t“Covered contract” or “covered policy” means a policy or contract or portion of a policy or contract for which coverage is provided under \u00a7 38.2-1700.\n\t\t“Extra-contractual claims” shall include, for example, claims relating to bad faith in the payment of claims, punitive damages, or attorney fees and costs.\n\t\t“Health benefit plan” means any hospital or medical expense policy or certificate, or health maintenance organization subscriber contract or any other similar health contract. “Health benefit plan” does not include:","type":"section","prefixes":[""],"prefix":"","entire_prefix":"","prefix_anchor":"","level":1,"next_prefix":"1"},"1":{"id":285709,"text":"Accident only insurance;","type":"section","prefixes":["1"],"prefix":"1","entire_prefix":"1","prefix_anchor":"1","level":1,"prior_prefix":"","next_prefix":"2"},"2":{"id":285710,"text":"Credit insurance;","type":"section","prefixes":["2"],"prefix":"2","entire_prefix":"2","prefix_anchor":"2","level":1,"prior_prefix":"1","next_prefix":"3"},"3":{"id":285711,"text":"Dental only insurance;","type":"section","prefixes":["3"],"prefix":"3","entire_prefix":"3","prefix_anchor":"3","level":1,"prior_prefix":"2","next_prefix":"4"},"4":{"id":285712,"text":"Vision only insurance;","type":"section","prefixes":["4"],"prefix":"4","entire_prefix":"4","prefix_anchor":"4","level":1,"prior_prefix":"3","next_prefix":"5"},"5":{"id":285713,"text":"Medicare Supplement insurance;","type":"section","prefixes":["5"],"prefix":"5","entire_prefix":"5","prefix_anchor":"5","level":1,"prior_prefix":"4","next_prefix":"6"},"6":{"id":285714,"text":"Benefits for long-term care, home health care, community-based care, or any combination thereof;","type":"section","prefixes":["6"],"prefix":"6","entire_prefix":"6","prefix_anchor":"6","level":1,"prior_prefix":"5","next_prefix":"7"},"7":{"id":285715,"text":"Disability income insurance;","type":"section","prefixes":["7"],"prefix":"7","entire_prefix":"7","prefix_anchor":"7","level":1,"prior_prefix":"6","next_prefix":"8"},"8":{"id":285716,"text":"Coverage for on-site medical clinics; or","type":"section","prefixes":["8"],"prefix":"8","entire_prefix":"8","prefix_anchor":"8","level":1,"prior_prefix":"7","next_prefix":"9"},"9":{"id":285717,"text":"Specified disease, hospital confinement indemnity, or limited benefit health insurance if the types of coverage do not provide coordination of benefits and are provided under separate policies or certificates.\n\t\t\t“Impaired insurer” means a member insurer considered by the Commission to be potentially unable to fulfill its contractual obligations.\n\t\t\t“Insolvent insurer” means a member insurer that is placed under an order of liquidation by a court of competent jurisdiction with a finding of insolvency.\n\t\t\t“Member insurer” means an insurer or health maintenance organization licensed to transact in the Commonwealth any class of insurance or health maintenance organization business to which this chapter applies under § 38.2-1700, including an insurer or health maintenance organization whose license to transact the business of insurance in the Commonwealth has been suspended, revoked, not renewed, or voluntarily withdrawn, but does not include cooperative nonprofit life benefit companies, mutual assessment life, accident and sickness insurance companies, burial societies, fraternal benefit societies, dental and optometric services plans, and health services plans not subject to this chapter pursuant to § 38.2-4213.\n\t\t\t“Moody’s Corporate Bond Yield Average” means the Monthly Average Corporates as published by Moody’s Investors Service, Inc., or any successor thereto.\n\t\t\t“Owner” of a policy or contract or “policyholder,” “policy owner,” and “contract owner” means the person who is identified as the legal owner under the terms of the policy or contract or who is otherwise vested with legal title to the policy or contract through a valid assignment completed in accordance with the terms of the policy or contract and properly recorded as the owner on the books of the member insurer. The terms “owner,” “contract owner,” “policyholder,” and “policy owner” do not include persons with a mere beneficial interest in a policy or contract.\n\t\t\t“Plan sponsor” means (i) the employer, in the case of a benefit plan established or maintained by a single employer; (ii) the employee organization in the case of a benefit plan established or maintained by an employee organization; or (iii) in the case of a benefit plan established or maintained by two or more employers or jointly by one or more employers and one or more employee organizations, the association, committee, joint board of trustees, or other similar group of representatives of the parties who establish or maintain the benefit plan.\n\t\t\t“Premiums” means amounts or considerations, by whatever name called, received on covered policies or contracts, less any returned premiums, considerations, and deposits and less dividends and experience credits. “Premiums” does not include amounts or considerations received for policies or contracts or for the portions of policies or contracts for which coverage is not provided under subsection C of § 38.2-1700 except that assessable premium shall not be reduced on account of subdivision C 2 of § 38.2-1700 relating to interest limitations and subdivision D 2 of § 38.2-1700 relating to limitations with respect to one individual, one participant, and one policy or contract owner. “Premiums” shall not include (i) premiums for coverage in excess of $5 million on an unallocated annuity contract covered under subdivisions D 2 d, e, and f of § 38.2-1700 or (ii) with respect to multiple nongroup policies of life insurance owned by one owner, whether the policy or contract owner is an individual, firm, corporation, or other person, and whether the persons insured are officers, managers, employees or other persons, premiums for coverage in excess of $5 million with respect to these policies or contracts, regardless of the number of policies or contracts held by the owner.\n\t\t\t“Principal place of business” of a plan sponsor or a person other than a natural person means the single state in which the natural persons who establish policy for the direction, control, and coordination of the operations of the entity as a whole primarily exercise that function, determined by the Association in its reasonable judgment by considering the following factors: (i) the state in which the primary executive and administrative headquarters of the entity is located; (ii) the state in which the principal office of the chief executive officer of the entity is located; (iii) the state in which the board of directors (or similar governing person or persons) of the entity conducts the majority of its meetings; (iv) the state from which the management of the overall operations of the entity is directed; and in the case of a benefit plan sponsored by affiliated companies comprising a consolidated corporation, the state in which the holding company or controlling affiliate has its principal place of business as determined using these factors. However, in the case of a plan sponsor, if more than 50 percent of the participants in the benefit plan are employed in a single state, that state shall be deemed to be the principal place of business of the plan sponsor. The principal place of business of a plan sponsor described in clause (iii) of the definition of plan sponsor in this section shall be deemed to be the principal place of business of the association, committee, joint board of trustees, or other similar group of representatives of the parties who establish or maintain the benefit plan that, in lieu of a specific or clear designation of a principal place of business, shall be deemed to be the principal place of business of the employer or employee organization that has the largest investment in the benefit plan in question.\n\t\t\t“Receivership court” means the court in the insolvent or impaired insurer’s state having jurisdiction over the conservation, rehabilitation, or liquidation of the member insurer.\n\t\t\t“Resident” means a person to whom a contractual obligation is owed and who resides in the Commonwealth on the date a member insurer becomes an impaired insurer or a court order is entered that determines a member insurer to be an insolvent insurer. A person may be a resident of only one state, which in the case of a person other than a natural person shall be its principal place of business. Citizens of the United States that are either (i) residents of foreign countries, or (ii) residents of United States possessions, territories, or protectorates that do not have an association similar to the Association, shall be deemed residents of the state of domicile of the member insurer that issued the policies or contracts.\n\t\t\t“Structured settlement annuity” means an annuity purchased in order to fund periodic payments for a plaintiff or other claimant in payment for or with respect to personal injury or sickness suffered by the plaintiff or other claimant.\n\t\t\t“Supplemental contract” means a written agreement entered into for the distribution of proceeds under a life, health, or annuity policy or contract.\n\t\t\t“Unallocated annuity contract” means an annuity contract or group annuity certificate that is not issued to and owned by an individual or a trust created by an individual for the benefit of one or more individuals, except to the extent of any annuity benefits guaranteed to an individual or such a trust by an insurer under the contract or certificate.","type":"section","prefixes":["9"],"prefix":"9","entire_prefix":"9","prefix_anchor":"9","level":1,"prior_prefix":"8"}},"ancestry":[{"id":14902,"edition_id":1,"name":"Establishment and Operation of the Association","identifier":"1","label":"article","depth":3,"order_by":1,"parent_id":14649,"metadata":{},"date_created":"2026-06-26 03:50:41","date_modified":"2026-06-26 03:50:41","permalink":{"id":212319,"object_type":"structure","relational_id":14902,"identifier":"1","token":"38.2\/17\/1","url":"\/38.2\/17\/1\/","edition_id":1,"permalink":0,"preferred":1}},{"id":14649,"edition_id":1,"name":"Virginia Life, Accident and Sickness Insurance Guaranty Association","identifier":"17","label":"chapter","depth":2,"order_by":1,"parent_id":12698,"metadata":{},"date_created":"2026-06-26 03:49:08","date_modified":"2026-06-26 03:49:08","permalink":{"id":212317,"object_type":"structure","relational_id":14649,"identifier":"17","token":"38.2\/17","url":"\/38.2\/17\/","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":85176,"structure_id":14902,"section_number":"38.2-1700","catch_line":"Purpose and applicability of chapter","url":"\/38.2-1700\/","token":"38.2\/17\/1\/38.2-1700","metadata":false},{"id":79730,"structure_id":14902,"section_number":"38.2-1701","catch_line":"Definitions","url":"\/38.2-1701\/","token":"38.2\/17\/1\/38.2-1701","metadata":false},{"id":62816,"structure_id":14902,"section_number":"38.2-1702","catch_line":"Association; creation; memberships; accounts; supervision","url":"\/38.2-1702\/","token":"38.2\/17\/1\/38.2-1702","metadata":false},{"id":72232,"structure_id":14902,"section_number":"38.2-1703","catch_line":"Board of directors of Association","url":"\/38.2-1703\/","token":"38.2\/17\/1\/38.2-1703","metadata":false},{"id":65404,"structure_id":14902,"section_number":"38.2-1704","catch_line":"Powers and duties of Association","url":"\/38.2-1704\/","token":"38.2\/17\/1\/38.2-1704","metadata":false},{"id":59600,"structure_id":14902,"section_number":"38.2-1705","catch_line":"Assessments","url":"\/38.2-1705\/","token":"38.2\/17\/1\/38.2-1705","metadata":false},{"id":74544,"structure_id":14902,"section_number":"38.2-1706","catch_line":"Plan of operation","url":"\/38.2-1706\/","token":"38.2\/17\/1\/38.2-1706","metadata":false},{"id":64107,"structure_id":14902,"section_number":"38.2-1707","catch_line":"Duties and powers of the Commission","url":"\/38.2-1707\/","token":"38.2\/17\/1\/38.2-1707","metadata":false},{"id":65805,"structure_id":14902,"section_number":"38.2-1708","catch_line":"Detection and prevention of insolvencies","url":"\/38.2-1708\/","token":"38.2\/17\/1\/38.2-1708","metadata":false},{"id":69918,"structure_id":14902,"section_number":"38.2-1709","catch_line":"Tax write-offs of certificates of contributions","url":"\/38.2-1709\/","token":"38.2\/17\/1\/38.2-1709","metadata":false},{"id":56896,"structure_id":14902,"section_number":"38.2-1710","catch_line":"Miscellaneous provisions","url":"\/38.2-1710\/","token":"38.2\/17\/1\/38.2-1710","metadata":false},{"id":61703,"structure_id":14902,"section_number":"38.2-1711","catch_line":"Examination of the Association; annual report","url":"\/38.2-1711\/","token":"38.2\/17\/1\/38.2-1711","metadata":false},{"id":57475,"structure_id":14902,"section_number":"38.2-1712","catch_line":"Tax exemptions","url":"\/38.2-1712\/","token":"38.2\/17\/1\/38.2-1712","metadata":false},{"id":77644,"structure_id":14902,"section_number":"38.2-1713","catch_line":"Immunity","url":"\/38.2-1713\/","token":"38.2\/17\/1\/38.2-1713","metadata":false},{"id":59069,"structure_id":14902,"section_number":"38.2-1714","catch_line":"Stay of proceedings; reopening default judgments","url":"\/38.2-1714\/","token":"38.2\/17\/1\/38.2-1714","metadata":false},{"id":59869,"structure_id":14902,"section_number":"38.2-1715","catch_line":"Prohibited advertisement of Association coverage in insurance sales; notice to policy owners","url":"\/38.2-1715\/","token":"38.2\/17\/1\/38.2-1715","metadata":false}],"previous_section":{"id":85176,"structure_id":14902,"section_number":"38.2-1700","catch_line":"Purpose and applicability of chapter","url":"\/38.2-1700\/","token":"38.2\/17\/1\/38.2-1700","metadata":false},"next_section":{"id":62816,"structure_id":14902,"section_number":"38.2-1702","catch_line":"Association; creation; memberships; accounts; supervision","url":"\/38.2-1702\/","token":"38.2\/17\/1\/38.2-1702","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-1701\/","history_text":"

This law was first created in 1976. The record of its establishment is cataloged in chapter 330 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. Unfortunately, the 1976 \u201cActs\u201d aren\u2019t available online. It has been modified 5 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 1980, chapter 186; in 1986, chapter 562; in 2010, chapter 510<\/a>; in 2015, chapter 710<\/a>; in 2018, chapter 706<\/a>.<\/p>","references":[{"id":66006,"section_number":"38.2-1509","catch_line":"Powers of Commission when authorized to rehabilitate or liquidate insurers by court order; disbursement of available assets to an association, etc","order_by":null,"url":"\/38.2-1509\/"}],"refers_to":[{"id":85176,"section_number":"38.2-1700","catch_line":"Purpose and applicability of chapter","order_by":null,"url":"\/38.2-1700\/"},{"id":62816,"section_number":"38.2-1702","catch_line":"Association; creation; memberships; accounts; supervision","order_by":null,"url":"\/38.2-1702\/"},{"id":57906,"section_number":"38.2-4213","catch_line":"Liability of participating providers upon merger of nonstock corporation","order_by":null,"url":"\/38.2-4213\/"}],"permalink":{"id":212325,"object_type":"law","relational_id":79730,"identifier":"38.2-1701","token":"38.2\/17\/1\/38.2-1701","url":"\/38.2-1701\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/38.2-1701\/","token":"38.2\/17\/1\/38.2-1701","dublin_core":{"Title":"Definitions","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-1701","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

As used in this chapter:\n\t\t“Account<\/span>” means any one of the two accounts<\/span> created under \u00a7 38.2-1702<\/a>.\n\t\t“Association<\/span>” means the Virginia Life, Accident and Sickness Insurance<\/span> Guaranty Association<\/span> created under \u00a7 38.2-1702<\/a>.\n\t\t“Authorized assessment<\/span>” or the term “authorized” when used in the context of assessments means that a resolution by the board of directors has been passed whereby an assessment will be called immediately or in the future from member insurers<\/span> for a specified amount. An assessment is authorized when the resolution is passed.\n\t\t“Benefit plan” means a specific employee, union, or association<\/span> of natural persons<\/span> benefit plan.\n\t\t“Called assessment<\/span>” or the term “called” when used in the context of assessments means that a notice has been issued by the Association<\/span> to member insurers<\/span> requiring that an authorized assessment<\/span> be paid within the time frame set forth within the notice. An authorized assessment<\/span> becomes a called assessment<\/span> when notice is mailed by the Association<\/span> to member insurers<\/span>.\n\t\t“Contractual obligation<\/span>” means an obligation under a policy or contract or certificate under a group policy or contract, or portion thereof for which coverage is provided under \u00a7 38.2-1700<\/a>.\n\t\t“Covered contract<\/span>” or “covered policy<\/span>” means a policy or contract or portion of a policy or contract for which coverage is provided under \u00a7 38.2-1700<\/a>.\n\t\t“Extra-contractual claims” shall include, for example, claims relating to bad faith in the payment of claims, punitive damages<\/span>, or attorney fees and costs.\n\t\t“Health benefit plan<\/span>” means any hospital or medical expense policy or certificate, or health maintenance organization subscriber contract or any other similar health contract. “Health benefit plan<\/span>” does not include:<\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Accident only insurance<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Credit insurance<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Dental only insurance<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Vision only insurance<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> Medicare<\/span> Supplement insurance<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

6.<\/span> Benefits for long-term care, home health care, community-based care, or any combination thereof; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

7.<\/span> Disability income insurance<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

8.<\/span> Coverage for on-site medical clinics; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

9.<\/span> Specified disease, hospital confinement indemnity, or limited benefit health insurance<\/span> if the types of coverage do not provide coordination of benefits and are provided under separate policies or certificates.\n\t\t\t“Impaired insurer<\/span>” means a member insurer<\/span> considered by the Commission<\/span> to be potentially unable to fulfill its contractual obligations<\/span>.\n\t\t\t“Insolvent insurer<\/span>” means a member insurer<\/span> that is placed under an order of liquidation<\/span> by a court of competent jurisdiction<\/span> with a finding<\/span> of insolvency.\n\t\t\t“Member insurer<\/span>” means an insurer or health maintenance organization licensed to transact in the Commonwealth any class of insurance<\/span> or health maintenance organization business to which this chapter applies under § 38.2-1700<\/a>, including an insurer or health maintenance organization whose license to transact the business of insurance<\/span> in the Commonwealth has been suspended, revoked, not renewed, or voluntarily withdrawn, but does not include cooperative nonprofit life benefit companies, mutual assessment life, accident and sickness insurance<\/span> companies, burial societies, fraternal benefit societies, dental and optometric services plans, and health services plans<\/span> not subject to this chapter pursuant to § 38.2-4213<\/a>.\n\t\t\t“Moody’s Corporate Bond<\/span> Yield Average” means the Monthly Average Corporates as published by Moody’s Investors Service, Inc., or any successor thereto.\n\t\t\t“Owner” of a policy or contract or “policyholder,” “policy owner<\/span>,” and “contract owner<\/span>” means the person<\/span> who is identified as the legal owner under the terms of the policy or contract or who is otherwise vested with legal title to the policy or contract through a valid assignment completed in accordance with the terms of the policy or contract and properly recorded as the owner on the books of the member insurer<\/span>. The terms “owner,” “contract owner<\/span>,” “policyholder,” and “policy owner<\/span>” do not include persons<\/span> with a mere beneficial interest in a policy or contract.\n\t\t\t“Plan sponsor<\/span>” means (i) the employer, in the case of a benefit plan established or maintained by a single employer; (ii) the employee organization in the case of a benefit plan established or maintained by an employee organization; or (iii) in the case of a benefit plan established or maintained by two or more employers or jointly by one or more employers and one or more employee organizations, the association<\/span>, committee, joint board of trustees, or other similar group of representatives of the parties who establish or maintain the benefit plan.\n\t\t\t“Premiums<\/span>” means amounts or considerations, by whatever name called, received on covered policies or contracts<\/span>, less any returned premiums<\/span>, considerations, and deposits and less dividends and experience credits. “Premiums<\/span>” does not include amounts or considerations received for policies or contracts<\/span> or for the portions of policies or contracts<\/span> for which coverage is not provided under subsection C of § 38.2-1700<\/a> except that assessable premium shall not be reduced on account<\/span> of subdivision C 2 of § 38.2-1700<\/a> relating to interest limitations and subdivision D 2 of § 38.2-1700<\/a> relating to limitations with respect to one individual, one participant, and one policy or contract owner<\/span>. “Premiums<\/span>” shall not include (i) premiums<\/span> for coverage in excess of $5 million on an unallocated annuity contract<\/span> covered under subdivisions D 2 d, e, and f of § 38.2-1700<\/a> or (ii) with respect to multiple nongroup policies of life insurance<\/span> owned by one owner, whether the policy or contract owner<\/span> is an individual, firm, corporation, or other person<\/span>, and whether the persons<\/span> insured are officers, managers, employees or other persons<\/span>, premiums<\/span> for coverage in excess of $5 million with respect to these policies or contracts<\/span>, regardless of the number of policies or contracts<\/span> held by the owner.\n\t\t\t“Principal place of business<\/span>” of a plan sponsor<\/span> or a person<\/span> other than a natural person<\/span> means the single state<\/span> in which the natural persons<\/span> who establish policy for the direction, control, and coordination of the operations of the entity as a whole primarily exercise that function, determined by the Association<\/span> in its reasonable judgment<\/span> by considering the following factors: (i) the state<\/span> in which the primary executive and administrative headquarters of the entity is located; (ii) the state<\/span> in which the principal office of the chief executive officer of the entity is located; (iii) the state<\/span> in which the board of directors (or similar governing person<\/span> or persons<\/span>) of the entity conducts the majority of its meetings; (iv) the state<\/span> from which the management of the overall operations of the entity is directed; and in the case of a benefit plan sponsored by affiliated companies comprising a consolidated corporation, the state<\/span> in which the holding company<\/span> or controlling affiliate has its principal place of business<\/span> as determined using these factors. However, in the case of a plan sponsor<\/span>, if more than 50 percent of the participants in the benefit plan are employed in a single state<\/span>, that state<\/span> shall be deemed to be the principal place of business<\/span> of the plan sponsor<\/span>. The principal place of business<\/span> of a plan sponsor<\/span> described in clause (iii) of the definition of plan sponsor<\/span> in this section shall be deemed to be the principal place of business<\/span> of the association<\/span>, committee, joint board of trustees, or other similar group of representatives of the parties who establish or maintain the benefit plan that, in lieu of a specific or clear designation of a principal place of business<\/span>, shall be deemed to be the principal place of business<\/span> of the employer or employee organization that has the largest investment in the benefit plan in question.\n\t\t\t“Receivership court<\/span>” means the court in the insolvent or impaired insurer<\/span>’s state<\/span> having jurisdiction<\/span> over the conservation, rehabilitation, or liquidation<\/span> of the member insurer<\/span>.\n\t\t\t“Resident<\/span>” means a person<\/span> to whom a contractual obligation<\/span> is owed and who resides in the Commonwealth on the date a member insurer<\/span> becomes an impaired insurer<\/span> or a court order<\/span> is entered that determines a member insurer<\/span> to be an insolvent insurer<\/span>. A person<\/span> may be a resident<\/span> of only one state<\/span>, which in the case of a person<\/span> other than a natural person<\/span> shall be its principal place of business<\/span>. Citizens of the United States<\/span> that are either (i) residents<\/span> of foreign countries, or (ii) residents<\/span> of United States<\/span> possessions<\/span>, territories, or protectorates that do not have an association<\/span> similar to the Association<\/span>, shall be deemed residents<\/span> of the state<\/span> of domicile of the member insurer<\/span> that issued the policies or contracts<\/span>.\n\t\t\t“Structured settlement annuity<\/span>” means an annuity purchased in order to fund periodic payments for a plaintiff<\/span> or other claimant in payment for or with respect to personal injury or sickness suffered by the plaintiff<\/span> or other claimant.\n\t\t\t“Supplemental contract<\/span>” means a written agreement entered into for the distribution of proceeds under a life, health, or annuity policy or contract.\n\t\t\t“Unallocated annuity contract<\/span>” means an annuity contract or group annuity certificate that is not issued to and owned by an individual or a trust created by an individual for the benefit of one or more individuals, except to the extent of any annuity benefits guaranteed to an individual or such a trust by an insurer under the contract or certificate. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nDEFINITIONS (\u00a7 38.2-1701)\n\nAs used in this chapter:\n\t\t“Account” means any one of the two accounts created under \u00a7\n38.2-1702.\n\t\t“Association” means the Virginia Life, Accident and Sickness\nInsurance Guaranty Association created under \u00a7 38.2-1702.\n\t\t“Authorized assessment” or the term “authorized” when\nused in the context of assessments means that a resolution by the board of\ndirectors has been passed whereby an assessment will be called immediately or in\nthe future from member insurers for a specified amount. An assessment is\nauthorized when the resolution is passed.\n\t\t“Benefit plan” means a specific employee, union, or association of\nnatural persons benefit plan.\n\t\t“Called assessment” or the term “called” when used in\nthe context of assessments means that a notice has been issued by the\nAssociation to member insurers requiring that an authorized assessment be paid\nwithin the time frame set forth within the notice. An authorized assessment\nbecomes a called assessment when notice is mailed by the Association to member\ninsurers.\n\t\t“Contractual obligation” means an obligation under a policy or\ncontract or certificate under a group policy or contract, or portion thereof for\nwhich coverage is provided under \u00a7 38.2-1700.\n\t\t“Covered contract” or “covered policy” means a policy\nor contract or portion of a policy or contract for which coverage is provided\nunder \u00a7 38.2-1700.\n\t\t“Extra-contractual claims” shall include, for example, claims\nrelating to bad faith in the payment of claims, punitive damages, or attorney\nfees and costs.\n\t\t“Health benefit plan” means any hospital or medical expense policy\nor certificate, or health maintenance organization subscriber contract or any\nother similar health contract. “Health benefit plan” does not\ninclude:\n\n1. Accident only insurance;\n\n2. Credit insurance;\n\n3. Dental only insurance;\n\n4. Vision only insurance;\n\n5. Medicare Supplement insurance;\n\n6. Benefits for long-term care, home health care, community-based care, or any\ncombination thereof;\n\n7. Disability income insurance;\n\n8. Coverage for on-site medical clinics; or\n\n9. Specified disease, hospital confinement indemnity, or limited benefit health\ninsurance if the types of coverage do not provide coordination of benefits and\nare provided under separate policies or certificates.\n\t\t\t“Impaired insurer” means a member insurer considered by the\nCommission to be potentially unable to fulfill its contractual obligations.\n\t\t\t“Insolvent insurer” means a member insurer that is placed under\nan order of liquidation by a court of competent jurisdiction with a finding of\ninsolvency.\n\t\t\t“Member insurer” means an insurer or health maintenance\norganization licensed to transact in the Commonwealth any class of insurance or\nhealth maintenance organization business to which this chapter applies under\n§ 38.2-1700, including an insurer or health maintenance organization whose\nlicense to transact the business of insurance in the Commonwealth has been\nsuspended, revoked, not renewed, or voluntarily withdrawn, but does not include\ncooperative nonprofit life benefit companies, mutual assessment life, accident\nand sickness insurance companies, burial societies, fraternal benefit societies,\ndental and optometric services plans, and health services plans not subject to\nthis chapter pursuant to § 38.2-4213.\n\t\t\t“Moody’s Corporate Bond Yield Average” means the Monthly\nAverage Corporates as published by Moody’s Investors Service, Inc., or any\nsuccessor thereto.\n\t\t\t“Owner” of a policy or contract or “policyholder,”\n“policy owner,” and “contract owner” means the person\nwho is identified as the legal owner under the terms of the policy or contract\nor who is otherwise vested with legal title to the policy or contract through a\nvalid assignment completed in accordance with the terms of the policy or\ncontract and properly recorded as the owner on the books of the member insurer.\nThe terms “owner,” “contract owner,”\n“policyholder,” and “policy owner” do not include\npersons with a mere beneficial interest in a policy or contract.\n\t\t\t“Plan sponsor” means (i) the employer, in the case of a benefit\nplan established or maintained by a single employer; (ii) the employee\norganization in the case of a benefit plan established or maintained by an\nemployee organization; or (iii) in the case of a benefit plan established or\nmaintained by two or more employers or jointly by one or more employers and one\nor more employee organizations, the association, committee, joint board of\ntrustees, or other similar group of representatives of the parties who establish\nor maintain the benefit plan.\n\t\t\t“Premiums” means amounts or considerations, by whatever name\ncalled, received on covered policies or contracts, less any returned premiums,\nconsiderations, and deposits and less dividends and experience credits.\n“Premiums” does not include amounts or considerations received for\npolicies or contracts or for the portions of policies or contracts for which\ncoverage is not provided under subsection C of § 38.2-1700 except that\nassessable premium shall not be reduced on account of subdivision C 2 of §\n38.2-1700 relating to interest limitations and subdivision D 2 of §\n38.2-1700 relating to limitations with respect to one individual, one\nparticipant, and one policy or contract owner. “Premiums” shall not\ninclude (i) premiums for coverage in excess of $5 million on an unallocated\nannuity contract covered under subdivisions D 2 d, e, and f of § 38.2-1700\nor (ii) with respect to multiple nongroup policies of life insurance owned by\none owner, whether the policy or contract owner is an individual, firm,\ncorporation, or other person, and whether the persons insured are officers,\nmanagers, employees or other persons, premiums for coverage in excess of $5\nmillion with respect to these policies or contracts, regardless of the number of\npolicies or contracts held by the owner.\n\t\t\t“Principal place of business” of a plan sponsor or a person other\nthan a natural person means the single state in which the natural persons who\nestablish policy for the direction, control, and coordination of the operations\nof the entity as a whole primarily exercise that function, determined by the\nAssociation in its reasonable judgment by considering the following factors: (i)\nthe state in which the primary executive and administrative headquarters of the\nentity is located; (ii) the state in which the principal office of the chief\nexecutive officer of the entity is located; (iii) the state in which the board\nof directors (or similar governing person or persons) of the entity conducts the\nmajority of its meetings; (iv) the state from which the management of the\noverall operations of the entity is directed; and in the case of a benefit plan\nsponsored by affiliated companies comprising a consolidated corporation, the\nstate in which the holding company or controlling affiliate has its principal\nplace of business as determined using these factors. However, in the case of a\nplan sponsor, if more than 50 percent of the participants in the benefit plan\nare employed in a single state, that state shall be deemed to be the principal\nplace of business of the plan sponsor. The principal place of business of a plan\nsponsor described in clause (iii) of the definition of plan sponsor in this\nsection shall be deemed to be the principal place of business of the\nassociation, committee, joint board of trustees, or other similar group of\nrepresentatives of the parties who establish or maintain the benefit plan that,\nin lieu of a specific or clear designation of a principal place of business,\nshall be deemed to be the principal place of business of the employer or\nemployee organization that has the largest investment in the benefit plan in\nquestion.\n\t\t\t“Receivership court” means the court in the insolvent or impaired\ninsurer’s state having jurisdiction over the conservation, rehabilitation,\nor liquidation of the member insurer.\n\t\t\t“Resident” means a person to whom a contractual obligation is\nowed and who resides in the Commonwealth on the date a member insurer becomes an\nimpaired insurer or a court order is entered that determines a member insurer to\nbe an insolvent insurer. A person may be a resident of only one state, which in\nthe case of a person other than a natural person shall be its principal place of\nbusiness. Citizens of the United States that are either (i) residents of foreign\ncountries, or (ii) residents of United States possessions, territories, or\nprotectorates that do not have an association similar to the Association, shall\nbe deemed residents of the state of domicile of the member insurer that issued\nthe policies or contracts.\n\t\t\t“Structured settlement annuity” means an annuity purchased in\norder to fund periodic payments for a plaintiff or other claimant in payment for\nor with respect to personal injury or sickness suffered by the plaintiff or\nother claimant.\n\t\t\t“Supplemental contract” means a written agreement entered into\nfor the distribution of proceeds under a life, health, or annuity policy or\ncontract.\n\t\t\t“Unallocated annuity contract” means an annuity contract or group\nannuity certificate that is not issued to and owned by an individual or a trust\ncreated by an individual for the benefit of one or more individuals, except to\nthe extent of any annuity benefits guaranteed to an individual or such a trust\nby an insurer under the contract or certificate.\n\nHISTORY: 1976, c. 330, \u00a7 38.1-482.19; 1980, c. 186; 1986, c. 562; 2010, c. 510;\n2015, c. 710; 2018, c. 706.","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}}