{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/38.2-3111.1.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/38.2-3111.1.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/38.2-3111.1.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/38.2-3111.1.html"}],"law_id":63114,"edition_id":1,"section_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","history":"2018, c. 847.","full_text":"A\n\nAs used in this section:\n\t\t\t“Employer” means a person doing business in or operating within the Commonwealth who employs a resident of the Commonwealth to work for wages or a salary or on commission and includes any similar entity acting directly or indirectly in the interest of an employer in relation to an employee. “Employer” does not include the Commonwealth or any of its agencies, institutions, or political subdivisions or any public body.\n\t\t\t“Pension plan” has the same meaning ascribed to that term in § 3(2) of ERISA.\n\t\t\t“Retirement annuity contract” means an allocated or unallocated group annuity contract that is issued or issued for delivery by an insurer to an employer or a pension plan, pension plan sponsor, or affiliate of such employer, pension plan, or pension plan sponsor, for the purpose of providing retirement benefits to employees or retirees of the employer under a defined benefit plan and that (i) is issued or issued for delivery in the Commonwealth or (ii) affects retired employees residing in the Commonwealth who are certificate holders or beneficiaries of a contract if the Commission has jurisdiction over the insurer issuing the contract.B\n\nOn or after July 1, 2018, no retirement annuity contract shall be transferred to or assumed by another insurer unless:1\n\nThe transfer is made to an assuming insurer that has a rating equivalent of A or better from two or more nationally recognized rating agencies; or2\n\nThe transfer to the assuming insurer is approved by the Commission, which approval shall not be granted unless the assuming insurer meets all of the requirements of § 38.2-1024.C\n\nIf the Commission determines that an insurer has violated this section or any order or regulation adopted hereunder, the Commission, after notice and opportunity to be heard, may impose a penalty in accordance with §§ 38.2-218 and 38.2-219.","order_by":null,"text":{"0":{"id":230184,"text":"As used in this section:\n\t\t\t“Employer” means a person doing business in or operating within the Commonwealth who employs a resident of the Commonwealth to work for wages or a salary or on commission and includes any similar entity acting directly or indirectly in the interest of an employer in relation to an employee. “Employer” does not include the Commonwealth or any of its agencies, institutions, or political subdivisions or any public body.\n\t\t\t“Pension plan” has the same meaning ascribed to that term in § 3(2) of ERISA.\n\t\t\t“Retirement annuity contract” means an allocated or unallocated group annuity contract that is issued or issued for delivery by an insurer to an employer or a pension plan, pension plan sponsor, or affiliate of such employer, pension plan, or pension plan sponsor, for the purpose of providing retirement benefits to employees or retirees of the employer under a defined benefit plan and that (i) is issued or issued for delivery in the Commonwealth or (ii) affects retired employees residing in the Commonwealth who are certificate holders or beneficiaries of a contract if the Commission has jurisdiction over the insurer issuing the contract.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":230185,"text":"On or after July 1, 2018, no retirement annuity contract shall be transferred to or assumed by another insurer unless:","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"B1"},"2":{"id":230186,"text":"The transfer is made to an assuming insurer that has a rating equivalent of A or better from two or more nationally recognized rating agencies; or","type":"section","prefixes":["B","1"],"prefix":"1","entire_prefix":"B1","prefix_anchor":"B1","level":2,"prior_prefix":"B","next_prefix":"B2"},"3":{"id":230187,"text":"The transfer to the assuming insurer is approved by the Commission, which approval shall not be granted unless the assuming insurer meets all of the requirements of § 38.2-1024.","type":"section","prefixes":["B","2"],"prefix":"2","entire_prefix":"B2","prefix_anchor":"B2","level":2,"prior_prefix":"B1","next_prefix":"C"},"4":{"id":230188,"text":"If the Commission determines that an insurer has violated this section or any order or regulation adopted hereunder, the Commission, after notice and opportunity to be heard, may impose a penalty in accordance with §§ 38.2-218 and 38.2-219.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B2"}},"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; 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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":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},"next_section":{"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},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-3111.1\/","history_text":"

This law was first created in 2018. The record of its establishment is cataloged in chapter 847<\/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":false,"refers_to":[{"id":64490,"section_number":"38.2-218","catch_line":"Penalties and restitution payments","order_by":null,"url":"\/38.2-218\/"},{"id":73928,"section_number":"38.2-219","catch_line":"Violations; procedure; cease and desist orders","order_by":null,"url":"\/38.2-219\/"}],"permalink":{"id":214395,"object_type":"law","relational_id":63114,"identifier":"38.2-3111.1","token":"38.2\/31\/1\/38.2-3111.1","url":"\/38.2-3111.1\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/38.2-3111.1\/","token":"38.2\/31\/1\/38.2-3111.1","dublin_core":{"Title":"Annuity contract purchased to fund retirement benefits; transfer subject to Commission approval","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-3111.1","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> As used in this section:\n\t\t\t“Employer<\/span>” means a person<\/span> doing business in or operating within the Commonwealth who employs a resident of the Commonwealth to work for wages or a salary or on commission<\/span> and includes any similar entity acting directly or indirectly in the interest of an employer<\/span> in relation to an employee. “Employer<\/span>” does not include the Commonwealth or any of its agencies, institutions, or political subdivisions or any public body.\n\t\t\t“Pension plan” has the same meaning ascribed to that term in § 3(2) of ERISA.\n\t\t\t“Retirement annuity contract<\/span>” means an allocated or unallocated group annuity contract that is issued or issued for delivery by an insurer<\/span> to an employer<\/span> or a pension plan, pension plan sponsor, or affiliate of such employer<\/span>, pension plan, or pension plan sponsor, for the purpose of providing retirement benefits to employees or retirees of the employer<\/span> under a defined benefit plan and that (i) is issued or issued for delivery in the Commonwealth or (ii) affects retired employees residing in the Commonwealth who are certificate holders or beneficiaries of a contract if the Commission<\/span> has jurisdiction<\/span> over the insurer<\/span> issuing the contract. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> On or after July 1, 2018, no retirement annuity contract<\/span> shall be transferred to or assumed by another insurer<\/span> unless: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> The transfer is made to an assuming insurer<\/span> that has a rating equivalent of A or better from two or more nationally recognized rating agencies; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> The transfer to the assuming insurer<\/span> is approved by the Commission<\/span>, which approval shall not be granted unless the assuming insurer<\/span> meets all of the requirements of § 38.2-1024<\/a>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> If the Commission<\/span> determines that an insurer<\/span> has violated this section or any order<\/span> or regulation adopted hereunder, the Commission<\/span>, after notice and opportunity to be heard, may impose a penalty<\/span> in accordance with §§ 38.2-218<\/a> and 38.2-219<\/a>. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nANNUITY CONTRACT PURCHASED TO FUND RETIREMENT BENEFITS; TRANSFER SUBJECT TO\nCOMMISSION APPROVAL (\u00a7 38.2-3111.1)\n\nA. As used in this section:\n\t\t\t“Employer” means a person doing business in or operating within\nthe Commonwealth who employs a resident of the Commonwealth to work for wages or\na salary or on commission and includes any similar entity acting directly or\nindirectly in the interest of an employer in relation to an employee.\n“Employer” does not include the Commonwealth or any of its agencies,\ninstitutions, or political subdivisions or any public body.\n\t\t\t“Pension plan” has the same meaning ascribed to that term in\n§ 3(2) of ERISA.\n\t\t\t“Retirement annuity contract” means an allocated or unallocated\ngroup annuity contract that is issued or issued for delivery by an insurer to an\nemployer or a pension plan, pension plan sponsor, or affiliate of such employer,\npension plan, or pension plan sponsor, for the purpose of providing retirement\nbenefits to employees or retirees of the employer under a defined benefit plan\nand that (i) is issued or issued for delivery in the Commonwealth or (ii)\naffects retired employees residing in the Commonwealth who are certificate\nholders or beneficiaries of a contract if the Commission has jurisdiction over\nthe insurer issuing the contract.\n\nB. On or after July 1, 2018, no retirement annuity contract shall be transferred\nto or assumed by another insurer unless:\n\n 1. The transfer is made to an assuming insurer that has a rating equivalent of\n A or better from two or more nationally recognized rating agencies; or\n\n 2. The transfer to the assuming insurer is approved by the Commission, which\n approval shall not be granted unless the assuming insurer meets all of the\n requirements of § 38.2-1024.\n\nC. If the Commission determines that an insurer has violated this section or any\norder or regulation adopted hereunder, the Commission, after notice and\nopportunity to be heard, may impose a penalty in accordance with §§\n38.2-218 and 38.2-219.\n\nHISTORY: 2018, c. 847.","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}}