{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/38.2-3100.2.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/38.2-3100.2.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/38.2-3100.2.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/38.2-3100.2.html"}],"law_id":62806,"edition_id":1,"section_id":62806,"structure_id":13293,"section_number":"38.2-3100.2","catch_line":"Funding agreements","history":"2004, c. 254; 2008, c. 216.","full_text":"A\n\nAny insurer that is licensed to write life insurance or annuities in the Commonwealth may deliver, or issue for delivery, funding agreements in the Commonwealth.B\n\nAs used in this section “funding agreement” is inclusive but not limited to guaranteed investment contracts, guaranteed interest contracts, unallocated group contracts, investment contracts, or other similar instrument by whatever name, and means an agreement that authorizes the insurer to accept funds and that provides for an accumulation of funds for the purpose of making one or more payments in fixed or variable amounts, or in both, that are not based on mortality or morbidity contingencies.C\n\nFunding agreements may be issued to persons to fund (i) benefits under any employee benefit plan as defined in the federal Employee Retirement Income Security Act of 1974 (29 U.S.C. § 1002 (3)) maintained in the United States or a foreign country; (ii) the activities of any organization exempt from taxation under section 501(c) of the Internal Revenue Code or any similar organization in any foreign country; (iii) any program of the government of the United States, the government of any state, foreign country, or political subdivision thereof; (iv) any agreement providing for one or more payments in satisfaction of a claim; (v) any program of any individual or entity that has assets in excess of $25,000,000; or (vi) any program of any individual or entity that is registered with the federal Securities and Exchange Commission.D\n\nAmounts paid to the insurer and proceeds applied under optional modes of settlement under a funding agreement may be allocated by the insurer to its general account and to one or more separate accounts. The assets of any such separate account shall not be chargeable with liabilities arising out of any other business that the insurer conducts. Where separate accounts are not chargeable with liabilities arising out of any other business of the insurer, a risk charge shall be paid on not less than a quarterly basis from the respective separate account to the general account to provide appropriate compensation and to fund an appropriate reserve, if any, for the risks to the general account.E\n\nNo licensed insurer shall make an agreement in the Commonwealth providing for the allocation of funding agreement amounts to a separate account until such insurer has filed with the Commission a statement as to its methods of operation of such separate account and the Commission has approved such statement. Subject to the approval of the Commission, any such statement may apply to one or more groups of separate accounts classified by investment policy, number or kinds of separate account participants, methods of distribution of such agreements or otherwise. In determining whether or not to approve any such statement, the Commission shall consider, among other things, the history, reputation and financial stability of the insurer and the character, experience, responsibility, competence, and general fitness of the officers and directors of the insurer. An amendment of any such statement that changes the investment policy of a separate account shall be treated as an original filing.F\n\nA funding agreement delivered or issued for delivery in the Commonwealth shall not qualify as or be considered to be life insurance, an annuity, or any other form of insurance defined and classified in Article 2 (§ 38.2-101 et seq.) of Chapter 1 of this title, but shall constitute transacting an insurance business in the Commonwealth.G\n\nFor any funding agreement assets held in the insurer’s general account, or for any other obligations due under the funding agreement from the insurer’s general account, the funding agreement shall be treated as an insurance contract, and the holder of the funding agreement shall be entitled to the same priority of distribution as other policyholders for the purposes of clause (ii) of subdivision B 1 of § 38.2-1509.H\n\nAny domestic insurer that has established separate accounts in connection with funding agreements and has allocated funds to such separate accounts shall file with the Commission, in addition to the annual statement required by § 38.2-1300, any other periodic or special reports the Commission prescribes.I\n\nAn insurer that has established a separate account pursuant to this section shall not transfer any assets to such separate account from any of its other accounts, including its general account, unless the transfer to such separate account is authorized by the Commission.","order_by":null,"text":{"0":{"id":228949,"text":"Any insurer that is licensed to write life insurance or annuities in the Commonwealth may deliver, or issue for delivery, funding agreements in the Commonwealth.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":228950,"text":"As used in this section “funding agreement” is inclusive but not limited to guaranteed investment contracts, guaranteed interest contracts, unallocated group contracts, investment contracts, or other similar instrument by whatever name, and means an agreement that authorizes the insurer to accept funds and that provides for an accumulation of funds for the purpose of making one or more payments in fixed or variable amounts, or in both, that are not based on mortality or morbidity contingencies.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":228951,"text":"Funding agreements may be issued to persons to fund (i) benefits under any employee benefit plan as defined in the federal Employee Retirement Income Security Act of 1974 (29 U.S.C. § 1002 (3)) maintained in the United States or a foreign country; (ii) the activities of any organization exempt from taxation under section 501(c) of the Internal Revenue Code or any similar organization in any foreign country; (iii) any program of the government of the United States, the government of any state, foreign country, or political subdivision thereof; (iv) any agreement providing for one or more payments in satisfaction of a claim; (v) any program of any individual or entity that has assets in excess of $25,000,000; or (vi) any program of any individual or entity that is registered with the federal Securities and Exchange Commission.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"D"},"3":{"id":228952,"text":"Amounts paid to the insurer and proceeds applied under optional modes of settlement under a funding agreement may be allocated by the insurer to its general account and to one or more separate accounts. The assets of any such separate account shall not be chargeable with liabilities arising out of any other business that the insurer conducts. Where separate accounts are not chargeable with liabilities arising out of any other business of the insurer, a risk charge shall be paid on not less than a quarterly basis from the respective separate account to the general account to provide appropriate compensation and to fund an appropriate reserve, if any, for the risks to the general account.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C","next_prefix":"E"},"4":{"id":228953,"text":"No licensed insurer shall make an agreement in the Commonwealth providing for the allocation of funding agreement amounts to a separate account until such insurer has filed with the Commission a statement as to its methods of operation of such separate account and the Commission has approved such statement. Subject to the approval of the Commission, any such statement may apply to one or more groups of separate accounts classified by investment policy, number or kinds of separate account participants, methods of distribution of such agreements or otherwise. In determining whether or not to approve any such statement, the Commission shall consider, among other things, the history, reputation and financial stability of the insurer and the character, experience, responsibility, competence, and general fitness of the officers and directors of the insurer. An amendment of any such statement that changes the investment policy of a separate account shall be treated as an original filing.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D","next_prefix":"F"},"5":{"id":228954,"text":"A funding agreement delivered or issued for delivery in the Commonwealth shall not qualify as or be considered to be life insurance, an annuity, or any other form of insurance defined and classified in Article 2 (§ 38.2-101 et seq.) of Chapter 1 of this title, but shall constitute transacting an insurance business in the Commonwealth.","type":"section","prefixes":["F"],"prefix":"F","entire_prefix":"F","prefix_anchor":"F","level":1,"prior_prefix":"E","next_prefix":"G"},"6":{"id":228955,"text":"For any funding agreement assets held in the insurer’s general account, or for any other obligations due under the funding agreement from the insurer’s general account, the funding agreement shall be treated as an insurance contract, and the holder of the funding agreement shall be entitled to the same priority of distribution as other policyholders for the purposes of clause (ii) of subdivision B 1 of § 38.2-1509.","type":"section","prefixes":["G"],"prefix":"G","entire_prefix":"G","prefix_anchor":"G","level":1,"prior_prefix":"F","next_prefix":"H"},"7":{"id":228956,"text":"Any domestic insurer that has established separate accounts in connection with funding agreements and has allocated funds to such separate accounts shall file with the Commission, in addition to the annual statement required by § 38.2-1300, any other periodic or special reports the Commission prescribes.","type":"section","prefixes":["H"],"prefix":"H","entire_prefix":"H","prefix_anchor":"H","level":1,"prior_prefix":"G","next_prefix":"I"},"8":{"id":228957,"text":"An insurer that has established a separate account pursuant to this section shall not transfer any assets to such separate account from any of its other accounts, including its general account, unless the transfer to such separate account is authorized by the Commission.","type":"section","prefixes":["I"],"prefix":"I","entire_prefix":"I","prefix_anchor":"I","level":1,"prior_prefix":"H"}},"ancestry":[{"id":13293,"edition_id":1,"name":"General Provisions","identifier":"1","label":"article","depth":3,"order_by":1,"parent_id":13292,"metadata":{},"date_created":"2026-06-26 03:44:35","date_modified":"2026-06-26 03:44:35","permalink":{"id":214333,"object_type":"structure","relational_id":13293,"identifier":"1","token":"38.2\/31\/1","url":"\/38.2\/31\/1\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13292,"edition_id":1,"name":"Life Insurance","identifier":"31","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":214331,"object_type":"structure","relational_id":13292,"identifier":"31","token":"38.2\/31","url":"\/38.2\/31\/","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":79264,"structure_id":13293,"section_number":"38.2-3100","catch_line":"Scope of chapter","url":"\/38.2-3100\/","token":"38.2\/31\/1\/38.2-3100","metadata":false},{"id":59125,"structure_id":13293,"section_number":"38.2-3100.1","catch_line":"Forms of insurance authorized","url":"\/38.2-3100.1\/","token":"38.2\/31\/1\/38.2-3100.1","metadata":false},{"id":62806,"structure_id":13293,"section_number":"38.2-3100.2","catch_line":"Funding agreements","url":"\/38.2-3100.2\/","token":"38.2\/31\/1\/38.2-3100.2","metadata":false},{"id":73524,"structure_id":13293,"section_number":"38.2-3100.3","catch_line":"Requirements of life insurance or annuity contracts used to fund preneed funeral contracts","url":"\/38.2-3100.3\/","token":"38.2\/31\/1\/38.2-3100.3","metadata":false},{"id":81650,"structure_id":13293,"section_number":"38.2-3101","catch_line":"Legal reserve insurers","url":"\/38.2-3101\/","token":"38.2\/31\/1\/38.2-3101","metadata":false},{"id":86718,"structure_id":13293,"section_number":"38.2-3102","catch_line":"Domestic insurers prohibited from insuring lives and persons of residents of \"reciprocal states.\"","url":"\/38.2-3102\/","token":"38.2\/31\/1\/38.2-3102","metadata":false},{"id":79156,"structure_id":13293,"section_number":"38.2-3103","catch_line":"Fraudulent procurement of policy; penalty","url":"\/38.2-3103\/","token":"38.2\/31\/1\/38.2-3103","metadata":false},{"id":67546,"structure_id":13293,"section_number":"38.2-3104","catch_line":"No policy to be issued purporting to take effect more than six months before application made; conversion permitted","url":"\/38.2-3104\/","token":"38.2\/31\/1\/38.2-3104","metadata":false},{"id":62631,"structure_id":13293,"section_number":"38.2-3105","catch_line":"What contracts with respect to life insurance may be made by minors","url":"\/38.2-3105\/","token":"38.2\/31\/1\/38.2-3105","metadata":false},{"id":79143,"structure_id":13293,"section_number":"38.2-3106","catch_line":"Suicide and execution not grounds of defense; exception","url":"\/38.2-3106\/","token":"38.2\/31\/1\/38.2-3106","metadata":false},{"id":58805,"structure_id":13293,"section_number":"38.2-3107","catch_line":"Incontestability of certain policies","url":"\/38.2-3107\/","token":"38.2\/31\/1\/38.2-3107","metadata":false},{"id":54784,"structure_id":13293,"section_number":"38.2-3108","catch_line":"Misstatement of age","url":"\/38.2-3108\/","token":"38.2\/31\/1\/38.2-3108","metadata":false},{"id":58169,"structure_id":13293,"section_number":"38.2-3109","catch_line":"Contestability of reinstated policy","url":"\/38.2-3109\/","token":"38.2\/31\/1\/38.2-3109","metadata":false},{"id":85290,"structure_id":13293,"section_number":"38.2-3110","catch_line":"Incontestability not applicable to excluded or restricted coverage","url":"\/38.2-3110\/","token":"38.2\/31\/1\/38.2-3110","metadata":false},{"id":86363,"structure_id":13293,"section_number":"38.2-3111","catch_line":"Assignment of life insurance policies","url":"\/38.2-3111\/","token":"38.2\/31\/1\/38.2-3111","metadata":false},{"id":63114,"structure_id":13293,"section_number":"38.2-3111.1","catch_line":"Annuity contract purchased to fund retirement benefits; transfer subject to Commission approval","url":"\/38.2-3111.1\/","token":"38.2\/31\/1\/38.2-3111.1","metadata":false},{"id":70263,"structure_id":13293,"section_number":"38.2-3112","catch_line":"Designation of testamentary trustee as beneficiary","url":"\/38.2-3112\/","token":"38.2\/31\/1\/38.2-3112","metadata":false},{"id":57329,"structure_id":13293,"section_number":"38.2-3113","catch_line":"Variable life insurance and variable annuities; separate accounts to be established; authority to issue; reports; special voting rights and procedures for owners","url":"\/38.2-3113\/","token":"38.2\/31\/1\/38.2-3113","metadata":false},{"id":72467,"structure_id":13293,"section_number":"38.2-3113.1","catch_line":"Modified guaranteed life insurance and modified guaranteed annuities; separate accounts; authority to issue; statements required; regulations to be issued; approval expenses","url":"\/38.2-3113.1\/","token":"38.2\/31\/1\/38.2-3113.1","metadata":false},{"id":69792,"structure_id":13293,"section_number":"38.2-3113.2","catch_line":"Qualified charitable gift annuities; issuance not business of insurance; disclosures to donors; unfair trade practices provisions not applicable","url":"\/38.2-3113.2\/","token":"38.2\/31\/1\/38.2-3113.2","metadata":false},{"id":65667,"structure_id":13293,"section_number":"38.2-3113.3","catch_line":"Educational loan provisions in life insurance policies","url":"\/38.2-3113.3\/","token":"38.2\/31\/1\/38.2-3113.3","metadata":false},{"id":85330,"structure_id":13293,"section_number":"38.2-3114","catch_line":"Statements required in variable life insurance and variable annuity contracts and certificates issued pursuant to group variable life insurance and group variable annuity contracts","url":"\/38.2-3114\/","token":"38.2\/31\/1\/38.2-3114","metadata":false},{"id":77467,"structure_id":13293,"section_number":"38.2-3115","catch_line":"Interest on life insurance and annuity contract proceeds","url":"\/38.2-3115\/","token":"38.2\/31\/1\/38.2-3115","metadata":false},{"id":72867,"structure_id":13293,"section_number":"38.2-3115.1","catch_line":"Accelerated payment of benefits","url":"\/38.2-3115.1\/","token":"38.2\/31\/1\/38.2-3115.1","metadata":false},{"id":86306,"structure_id":13293,"section_number":"38.2-3116","catch_line":"Commission to establish standards for simplified and readable life insurance and annuity policies","url":"\/38.2-3116\/","token":"38.2\/31\/1\/38.2-3116","metadata":false},{"id":54283,"structure_id":13293,"section_number":"38.2-3117","catch_line":"Standards for certain policies; prohibited policies","url":"\/38.2-3117\/","token":"38.2\/31\/1\/38.2-3117","metadata":false},{"id":83030,"structure_id":13293,"section_number":"38.2-3117.01","catch_line":"Provision of life insurance information upon notification of insured's death","url":"\/38.2-3117.01\/","token":"38.2\/31\/1\/38.2-3117.01","metadata":false}],"previous_section":{"id":59125,"structure_id":13293,"section_number":"38.2-3100.1","catch_line":"Forms of insurance authorized","url":"\/38.2-3100.1\/","token":"38.2\/31\/1\/38.2-3100.1","metadata":false},"next_section":{"id":73524,"structure_id":13293,"section_number":"38.2-3100.3","catch_line":"Requirements of life insurance or annuity contracts used to fund preneed funeral contracts","url":"\/38.2-3100.3\/","token":"38.2\/31\/1\/38.2-3100.3","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-3100.2\/","history_text":"

This law was first created in 2004. The record of its establishment is cataloged in chapter 254<\/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. It has been modified 1 time. 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. That modification is as follows: in 2008, chapter 216<\/a>.<\/p>","references":[{"id":63632,"section_number":"38.2-1443.1","catch_line":"Investment of amounts allocated to separate accounts for modified guaranteed life insurance, modified guaranteed annuities, and funding agreements","order_by":null,"url":"\/38.2-1443.1\/"}],"refers_to":[{"id":72897,"section_number":"38.2-101","catch_line":"Classification of insurance","order_by":null,"url":"\/38.2-101\/"},{"id":81115,"section_number":"38.2-1300","catch_line":"Annual statements","order_by":null,"url":"\/38.2-1300\/"}],"permalink":{"id":214343,"object_type":"law","relational_id":62806,"identifier":"38.2-3100.2","token":"38.2\/31\/1\/38.2-3100.2","url":"\/38.2-3100.2\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/38.2-3100.2\/","token":"38.2\/31\/1\/38.2-3100.2","dublin_core":{"Title":"Funding agreements","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-3100.2","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> Any insurer<\/span> that is licensed to write life insurance<\/span> or annuities in the Commonwealth may deliver, or issue<\/span> for delivery, funding agreements<\/span> in the Commonwealth. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> As used in this section “funding agreement<\/span>” is inclusive but not limited to guaranteed investment contracts<\/span>, guaranteed interest contracts<\/span>, unallocated group contracts<\/span>, investment contracts<\/span>, or other similar instrument by whatever name, and means an agreement that authorizes the insurer<\/span> to accept funds and that provides for an accumulation of funds for the purpose of making one or more payments in fixed or variable amounts, or in both, that are not based on mortality or morbidity contingencies. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> Funding agreements<\/span> may be issued to persons<\/span> to fund (i) benefits under any employee benefit plan as defined in the federal Employee Retirement Income Security Act of 1974 (29 U.S.C. § 1002 (3)) maintained in the United States<\/span> or a foreign country; (ii) the activities of any organization exempt from taxation under section 501(c) of the Internal Revenue Code or any similar organization in any foreign country; (iii) any program of the government of the United States<\/span>, the government of any state<\/span>, foreign country, or political subdivision thereof; (iv) any agreement providing for one or more payments in satisfaction of a claim; (v) any program of any individual or entity that has assets<\/span> in excess of $25,000,000; or (vi) any program of any individual or entity that is registered with the federal Securities and Exchange Commission<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> Amounts paid to the insurer<\/span> and proceeds applied under optional modes of settlement<\/span> under a funding agreement<\/span> may be allocated by the insurer<\/span> to its general account and to one or more separate accounts. The assets<\/span> of any such separate account shall not be chargeable with liabilities arising out of any other business that the insurer<\/span> conducts. Where separate accounts are not chargeable with liabilities arising out of any other business of the insurer<\/span>, a risk charge shall be paid on not less than a quarterly basis from the respective separate account to the general account to provide appropriate compensation and to fund an appropriate reserve, if any, for the risks to the general account. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> No licensed insurer<\/span> shall make an agreement in the Commonwealth providing for the allocation of funding agreement<\/span> amounts to a separate account until such insurer<\/span> has filed with the Commission<\/span> a statement as to its methods of operation of such separate account and the Commission<\/span> has approved such statement. Subject to the approval of the Commission<\/span>, any such statement may apply to one or more groups of separate accounts classified by investment policy, number or kinds of separate account participants, methods of distribution of such agreements or otherwise. In determining whether or not to approve any such statement, the Commission<\/span> shall consider, among other things, the history, reputation and financial stability of the insurer<\/span> and the character, experience, responsibility, competence, and general fitness of the officers and directors of the insurer<\/span>. An amendment of any such statement that changes the investment policy of a separate account shall be treated as an original filing. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

F.<\/span> A funding agreement<\/span> delivered or issued for delivery in the Commonwealth shall not qualify as or be considered to be life insurance<\/span>, an annuity, or any other form of insurance<\/span> defined and classified in Article 2 (§ 38.2-101<\/a> et seq.) of Chapter 1 of this title, but shall constitute transacting an insurance<\/span> business in the Commonwealth. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

G.<\/span> For any funding agreement<\/span> assets<\/span> held in the insurer<\/span>’s general account, or for any other obligations due under the funding agreement<\/span> from the insurer<\/span>’s general account, the funding agreement<\/span> shall be treated as an insurance<\/span> contract<\/span>, and the holder of the funding agreement<\/span> shall be entitled to the same priority of distribution as other policyholders for the purposes of clause (ii) of subdivision B 1 of § 38.2-1509<\/a>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

H.<\/span> Any domestic insurer<\/span> that has established separate accounts in connection with funding agreements<\/span> and has allocated funds to such separate accounts shall file with the Commission<\/span>, in addition to the annual statement required by § 38.2-1300<\/a>, any other periodic or special reports the Commission<\/span> prescribes. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

I.<\/span> An insurer<\/span> that has established a separate account pursuant to this section shall not transfer any assets<\/span> to such separate account from any of its other accounts, including its general account, unless the transfer to such separate account is authorized by the Commission<\/span>. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nFUNDING AGREEMENTS (\u00a7 38.2-3100.2)\n\nA. Any insurer that is licensed to write life insurance or annuities in the\nCommonwealth may deliver, or issue for delivery, funding agreements in the\nCommonwealth.\n\nB. As used in this section “funding agreement” is inclusive but not\nlimited to guaranteed investment contracts, guaranteed interest contracts,\nunallocated group contracts, investment contracts, or other similar instrument\nby whatever name, and means an agreement that authorizes the insurer to accept\nfunds and that provides for an accumulation of funds for the purpose of making\none or more payments in fixed or variable amounts, or in both, that are not\nbased on mortality or morbidity contingencies.\n\nC. Funding agreements may be issued to persons to fund (i) benefits under any\nemployee benefit plan as defined in the federal Employee Retirement Income\nSecurity Act of 1974 (29 U.S.C. § 1002 (3)) maintained in the United States\nor a foreign country; (ii) the activities of any organization exempt from\ntaxation under section 501(c) of the Internal Revenue Code or any similar\norganization in any foreign country; (iii) any program of the government of the\nUnited States, the government of any state, foreign country, or political\nsubdivision thereof; (iv) any agreement providing for one or more payments in\nsatisfaction of a claim; (v) any program of any individual or entity that has\nassets in excess of $25,000,000; or (vi) any program of any individual or entity\nthat is registered with the federal Securities and Exchange Commission.\n\nD. Amounts paid to the insurer and proceeds applied under optional modes of\nsettlement under a funding agreement may be allocated by the insurer to its\ngeneral account and to one or more separate accounts. The assets of any such\nseparate account shall not be chargeable with liabilities arising out of any\nother business that the insurer conducts. Where separate accounts are not\nchargeable with liabilities arising out of any other business of the insurer, a\nrisk charge shall be paid on not less than a quarterly basis from the respective\nseparate account to the general account to provide appropriate compensation and\nto fund an appropriate reserve, if any, for the risks to the general account.\n\nE. No licensed insurer shall make an agreement in the Commonwealth providing for\nthe allocation of funding agreement amounts to a separate account until such\ninsurer has filed with the Commission a statement as to its methods of operation\nof such separate account and the Commission has approved such statement. Subject\nto the approval of the Commission, any such statement may apply to one or more\ngroups of separate accounts classified by investment policy, number or kinds of\nseparate account participants, methods of distribution of such agreements or\notherwise. In determining whether or not to approve any such statement, the\nCommission shall consider, among other things, the history, reputation and\nfinancial stability of the insurer and the character, experience,\nresponsibility, competence, and general fitness of the officers and directors of\nthe insurer. An amendment of any such statement that changes the investment\npolicy of a separate account shall be treated as an original filing.\n\nF. A funding agreement delivered or issued for delivery in the Commonwealth\nshall not qualify as or be considered to be life insurance, an annuity, or any\nother form of insurance defined and classified in Article 2 (§ 38.2-101 et\nseq.) of Chapter 1 of this title, but shall constitute transacting an insurance\nbusiness in the Commonwealth.\n\nG. For any funding agreement assets held in the insurer’s general account,\nor for any other obligations due under the funding agreement from the\ninsurer’s general account, the funding agreement shall be treated as an\ninsurance contract, and the holder of the funding agreement shall be entitled to\nthe same priority of distribution as other policyholders for the purposes of\nclause (ii) of subdivision B 1 of § 38.2-1509.\n\nH. Any domestic insurer that has established separate accounts in connection\nwith funding agreements and has allocated funds to such separate accounts shall\nfile with the Commission, in addition to the annual statement required by §\n38.2-1300, any other periodic or special reports the Commission prescribes.\n\nI. An insurer that has established a separate account pursuant to this section\nshall not transfer any assets to such separate account from any of its other\naccounts, including its general account, unless the transfer to such separate\naccount is authorized by the Commission.\n\nHISTORY: 2004, c. 254; 2008, c. 216.","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}}