{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/38.2-3113.1.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/38.2-3113.1.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/38.2-3113.1.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/38.2-3113.1.html"}],"law_id":72467,"edition_id":1,"section_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","history":"1992, c. 210.","full_text":"A\n\nFor purposes of this section, &#8220;modified guaranteed contracts&#8221; means modified guaranteed life insurance or modified guaranteed annuity contracts. The provisions of this section apply only to such contracts.B\n\nA domestic insurer that issues modified guaranteed contracts may establish one or more separate accounts in connection with these types of contracts. All amounts received by the insurer to provide benefits under contracts for which separate accounts have been established shall be added to the appropriate separate account. Unless provided otherwise in the contract and approved by the Commission in its discretion, the assets of any such separate account shall be chargeable with liabilities arising out of any other business the insurer may conduct.C\n\nA foreign or alien insurer licensed to do business in this Commonwealth may be licensed to deliver or issue for delivery modified guaranteed contracts in this Commonwealth only if authorized to issue such contracts under the laws of its domicile.D\n\nNo domestic, foreign, or alien insurer shall be licensed to deliver or issue for delivery modified guaranteed contracts in this Commonwealth, until the insurer has satisfied the Commission that its condition and methods of operation in connection with the issuance of modified guaranteed contracts will not render its operation hazardous to the public or to its policyholders in this Commonwealth. In determining the qualifications of an insurer to deliver or issue for delivery such modified guaranteed contracts in this Commonwealth, the Commission shall consider, but shall not be limited to considering, the following: (i) the history and financial condition of the insurer; (ii) the character, responsibility, and general fitness of the officers and directors of the insurer; and (iii) in the case of a foreign or alien insurer, whether the regulation provided by the laws of its domicile provides a degree of protection to policyholders and the public substantially equal to that provided by this section and any rules and regulations issued by the Commission.E\n\nEach insurer that has established any separate accounts in connection with modified guaranteed contracts, and delivers or issues for delivery modified guaranteed contracts in this Commonwealth shall file with the Commission, in addition to the annual statement required by &#xA7; 38.2-1300, any other periodic or special reports the Commission prescribes.F\n\nAny modified guaranteed contract delivered or issued for delivery in this Commonwealth, and any certificate evidencing nonforfeiture benefits that vary according to a market-value adjustment formula issued pursuant to any life insurance or annuity contract issued on a group basis shall (i) contain, on its first page, a prominent statement that the nonforfeiture values may increase or decrease, based on the market-value adjustment formula in the contract, and (ii) for modified guaranteed life insurance only, be accompanied by a written disclosure to the purchaser of the policy&#8217;s &#8220;interest adjusted net cost index&#8221; in compliance with regulations or forms approved by the Commission.G\n\nThe Commission may promulgate reasonable regulations applicable to modified guaranteed contracts and to any separate accounts that may be established in connection with such contracts.H\n\nReasonable actuarial expenses incurred in connection with approval of a modified contract shall be paid by the person seeking approval of such a contract.","order_by":null,"text":{"0":{"id":261013,"text":"For purposes of this section, &#8220;modified guaranteed contracts&#8221; means modified guaranteed life insurance or modified guaranteed annuity contracts. The provisions of this section apply only to such contracts.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":261014,"text":"A domestic insurer that issues modified guaranteed contracts may establish one or more separate accounts in connection with these types of contracts. All amounts received by the insurer to provide benefits under contracts for which separate accounts have been established shall be added to the appropriate separate account. Unless provided otherwise in the contract and approved by the Commission in its discretion, the assets of any such separate account shall be chargeable with liabilities arising out of any other business the insurer may conduct.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":261015,"text":"A foreign or alien insurer licensed to do business in this Commonwealth may be licensed to deliver or issue for delivery modified guaranteed contracts in this Commonwealth only if authorized to issue such contracts under the laws of its domicile.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"D"},"3":{"id":261016,"text":"No domestic, foreign, or alien insurer shall be licensed to deliver or issue for delivery modified guaranteed contracts in this Commonwealth, until the insurer has satisfied the Commission that its condition and methods of operation in connection with the issuance of modified guaranteed contracts will not render its operation hazardous to the public or to its policyholders in this Commonwealth. In determining the qualifications of an insurer to deliver or issue for delivery such modified guaranteed contracts in this Commonwealth, the Commission shall consider, but shall not be limited to considering, the following: (i) the history and financial condition of the insurer; (ii) the character, responsibility, and general fitness of the officers and directors of the insurer; and (iii) in the case of a foreign or alien insurer, whether the regulation provided by the laws of its domicile provides a degree of protection to policyholders and the public substantially equal to that provided by this section and any rules and regulations issued by the Commission.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C","next_prefix":"E"},"4":{"id":261017,"text":"Each insurer that has established any separate accounts in connection with modified guaranteed contracts, and delivers or issues for delivery modified guaranteed contracts in this Commonwealth shall file with the Commission, in addition to the annual statement required by &#xA7; 38.2-1300, any other periodic or special reports the Commission prescribes.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D","next_prefix":"F"},"5":{"id":261018,"text":"Any modified guaranteed contract delivered or issued for delivery in this Commonwealth, and any certificate evidencing nonforfeiture benefits that vary according to a market-value adjustment formula issued pursuant to any life insurance or annuity contract issued on a group basis shall (i) contain, on its first page, a prominent statement that the nonforfeiture values may increase or decrease, based on the market-value adjustment formula in the contract, and (ii) for modified guaranteed life insurance only, be accompanied by a written disclosure to the purchaser of the policy&#8217;s &#8220;interest adjusted net cost index&#8221; in compliance with regulations or forms approved by the Commission.","type":"section","prefixes":["F"],"prefix":"F","entire_prefix":"F","prefix_anchor":"F","level":1,"prior_prefix":"E","next_prefix":"G"},"6":{"id":261019,"text":"The Commission may promulgate reasonable regulations applicable to modified guaranteed contracts and to any separate accounts that may be established in connection with such contracts.","type":"section","prefixes":["G"],"prefix":"G","entire_prefix":"G","prefix_anchor":"G","level":1,"prior_prefix":"F","next_prefix":"H"},"7":{"id":261020,"text":"Reasonable actuarial expenses incurred in connection with approval of a modified contract shall be paid by the person seeking approval of such a contract.","type":"section","prefixes":["H"],"prefix":"H","entire_prefix":"H","prefix_anchor":"H","level":1,"prior_prefix":"G"}},"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":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},"next_section":{"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},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-3113.1\/","history_text":"<p>This law was first created in 1992. The record of its establishment is cataloged in chapter 210 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 1992 \u201cActs\u201d aren\u2019t available online.<\/p>","references":[{"id":62859,"section_number":"38.2-105.1","catch_line":"Modified guaranteed life insurance","order_by":null,"url":"\/38.2-105.1\/"},{"id":56142,"section_number":"38.2-107.1","catch_line":"Modified guaranteed annuity","order_by":null,"url":"\/38.2-107.1\/"},{"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":81115,"section_number":"38.2-1300","catch_line":"Annual statements","order_by":null,"url":"\/38.2-1300\/"}],"permalink":{"id":214407,"object_type":"law","relational_id":72467,"identifier":"38.2-3113.1","token":"38.2\/31\/1\/38.2-3113.1","url":"\/38.2-3113.1\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/38.2-3113.1\/","token":"38.2\/31\/1\/38.2-3113.1","dublin_core":{"Title":"Modified guaranteed life insurance and modified guaranteed annuities; separate accounts; authority to issue; statements required; regulations to be issued; approval expenses","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-3113.1","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t<section id=\"A\"><p><span class=\"prefix-number\">A.<\/span> For purposes of this section, &#8220;<span class=\"dictionary\">modified guaranteed contracts<\/span>&#8221; means modified guaranteed life <span class=\"dictionary\">insurance<\/span> or modified guaranteed annuity contracts. The provisions of this section apply only to such contracts. <a id=\"paragraph-261013\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/38.2-3113.1\/#A\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"B\"><p><span class=\"prefix-number\">B.<\/span> A domestic <span class=\"dictionary\">insurer<\/span> that <span class=\"dictionary\">issues<\/span> <span class=\"dictionary\">modified guaranteed contracts<\/span> may establish one or more separate accounts in connection with these types of contracts. All amounts received by the <span class=\"dictionary\">insurer<\/span> to provide benefits under contracts for which separate accounts have been established shall be added to the appropriate separate account. Unless provided otherwise in the <span class=\"dictionary\">contract<\/span> and approved by the <span class=\"dictionary\">Commission<\/span> in its discretion, the <span class=\"dictionary\">assets<\/span> of any such separate account shall be chargeable with liabilities arising out of any other business the <span class=\"dictionary\">insurer<\/span> may conduct. <a id=\"paragraph-261014\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/38.2-3113.1\/#B\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"C\"><p><span class=\"prefix-number\">C.<\/span> A foreign or alien <span class=\"dictionary\">insurer<\/span> licensed to do business in this Commonwealth may be licensed to deliver or <span class=\"dictionary\">issue<\/span> for delivery <span class=\"dictionary\">modified guaranteed contracts<\/span> in this Commonwealth only if authorized to <span class=\"dictionary\">issue<\/span> such contracts under the <span class=\"dictionary\">laws<\/span> of its domicile. <a id=\"paragraph-261015\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/38.2-3113.1\/#C\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"D\"><p><span class=\"prefix-number\">D.<\/span> No domestic, foreign, or alien <span class=\"dictionary\">insurer<\/span> shall be licensed to deliver or <span class=\"dictionary\">issue<\/span> for delivery <span class=\"dictionary\">modified guaranteed contracts<\/span> in this Commonwealth, until the <span class=\"dictionary\">insurer<\/span> has satisfied the <span class=\"dictionary\">Commission<\/span> that its condition and methods of operation in connection with the issuance of <span class=\"dictionary\">modified guaranteed contracts<\/span> will not render its operation hazardous to the public or to its policyholders in this Commonwealth. In determining the qualifications of an <span class=\"dictionary\">insurer<\/span> to deliver or <span class=\"dictionary\">issue<\/span> for delivery such <span class=\"dictionary\">modified guaranteed contracts<\/span> in this Commonwealth, the <span class=\"dictionary\">Commission<\/span> shall consider, but shall not be limited to considering, the following: (i) the history and financial condition of the <span class=\"dictionary\">insurer<\/span>; (ii) the character, responsibility, and general fitness of the officers and directors of the <span class=\"dictionary\">insurer<\/span>; and (iii) in the case of a foreign or alien <span class=\"dictionary\">insurer<\/span>, whether the regulation provided by the <span class=\"dictionary\">laws<\/span> of its domicile provides a degree of protection to policyholders and the public substantially equal to that provided by this section and any rules and regulations issued by the <span class=\"dictionary\">Commission<\/span>. <a id=\"paragraph-261016\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/38.2-3113.1\/#D\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"E\"><p><span class=\"prefix-number\">E.<\/span> Each <span class=\"dictionary\">insurer<\/span> that has established any separate accounts in connection with <span class=\"dictionary\">modified guaranteed contracts<\/span>, and delivers or <span class=\"dictionary\">issues<\/span> for delivery <span class=\"dictionary\">modified guaranteed contracts<\/span> in this Commonwealth shall file with the <span class=\"dictionary\">Commission<\/span>, in addition to the annual statement required by &#xA7; <a class=\"law\" title=\"Annual statements\" href=\"\/38.2-1300\/\">38.2-1300<\/a>, any other periodic or special reports the <span class=\"dictionary\">Commission<\/span> prescribes. <a id=\"paragraph-261017\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/38.2-3113.1\/#E\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"F\"><p><span class=\"prefix-number\">F.<\/span> Any modified guaranteed <span class=\"dictionary\">contract<\/span> delivered or issued for delivery in this Commonwealth, and any certificate evidencing nonforfeiture benefits that vary according to a market-value adjustment formula issued pursuant to any life <span class=\"dictionary\">insurance<\/span> or annuity <span class=\"dictionary\">contract<\/span> issued on a group basis shall (i) contain, on its first page, a prominent statement that the nonforfeiture values may increase or decrease, based on the market-value adjustment formula in the <span class=\"dictionary\">contract<\/span>, and (ii) for modified guaranteed life <span class=\"dictionary\">insurance<\/span> only, be accompanied by a written disclosure to the purchaser of the policy&#8217;s &#8220;interest adjusted net cost index&#8221; in compliance with regulations or forms approved by the <span class=\"dictionary\">Commission<\/span>. <a id=\"paragraph-261018\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/38.2-3113.1\/#F\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"G\"><p><span class=\"prefix-number\">G.<\/span> The <span class=\"dictionary\">Commission<\/span> may promulgate reasonable regulations applicable to <span class=\"dictionary\">modified guaranteed contracts<\/span> and to any separate accounts that may be established in connection with such contracts. <a id=\"paragraph-261019\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/38.2-3113.1\/#G\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"H\"><p><span class=\"prefix-number\">H.<\/span> Reasonable actuarial expenses incurred in connection with approval of a modified <span class=\"dictionary\">contract<\/span> shall be paid by the <span class=\"dictionary\">person<\/span> seeking approval of such a <span class=\"dictionary\">contract<\/span>. <a id=\"paragraph-261020\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/38.2-3113.1\/#H\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>","plain_text":"                                 CODE OF VIRGINIA\n\nMODIFIED GUARANTEED LIFE INSURANCE AND MODIFIED GUARANTEED ANNUITIES; SEPARATE\nACCOUNTS; AUTHORITY TO ISSUE; STATEMENTS REQUIRED; REGULATIONS TO BE ISSUED;\nAPPROVAL EXPENSES (\u00a7 38.2-3113.1)\n\nA. For purposes of this section, &#8220;modified guaranteed contracts&#8221;\nmeans modified guaranteed life insurance or modified guaranteed annuity\ncontracts. The provisions of this section apply only to such contracts.\n\nB. A domestic insurer that issues modified guaranteed contracts may establish\none or more separate accounts in connection with these types of contracts. All\namounts received by the insurer to provide benefits under contracts for which\nseparate accounts have been established shall be added to the appropriate\nseparate account. Unless provided otherwise in the contract and approved by the\nCommission in its discretion, the assets of any such separate account shall be\nchargeable with liabilities arising out of any other business the insurer may\nconduct.\n\nC. A foreign or alien insurer licensed to do business in this Commonwealth may\nbe licensed to deliver or issue for delivery modified guaranteed contracts in\nthis Commonwealth only if authorized to issue such contracts under the laws of\nits domicile.\n\nD. No domestic, foreign, or alien insurer shall be licensed to deliver or issue\nfor delivery modified guaranteed contracts in this Commonwealth, until the\ninsurer has satisfied the Commission that its condition and methods of operation\nin connection with the issuance of modified guaranteed contracts will not render\nits operation hazardous to the public or to its policyholders in this\nCommonwealth. In determining the qualifications of an insurer to deliver or\nissue for delivery such modified guaranteed contracts in this Commonwealth, the\nCommission shall consider, but shall not be limited to considering, the\nfollowing: (i) the history and financial condition of the insurer; (ii) the\ncharacter, responsibility, and general fitness of the officers and directors of\nthe insurer; and (iii) in the case of a foreign or alien insurer, whether the\nregulation provided by the laws of its domicile provides a degree of protection\nto policyholders and the public substantially equal to that provided by this\nsection and any rules and regulations issued by the Commission.\n\nE. Each insurer that has established any separate accounts in connection with\nmodified guaranteed contracts, and delivers or issues for delivery modified\nguaranteed contracts in this Commonwealth shall file with the Commission, in\naddition to the annual statement required by &#xA7; 38.2-1300, any other\nperiodic or special reports the Commission prescribes.\n\nF. Any modified guaranteed contract delivered or issued for delivery in this\nCommonwealth, and any certificate evidencing nonforfeiture benefits that vary\naccording to a market-value adjustment formula issued pursuant to any life\ninsurance or annuity contract issued on a group basis shall (i) contain, on its\nfirst page, a prominent statement that the nonforfeiture values may increase or\ndecrease, based on the market-value adjustment formula in the contract, and (ii)\nfor modified guaranteed life insurance only, be accompanied by a written\ndisclosure to the purchaser of the policy&#8217;s &#8220;interest adjusted net\ncost index&#8221; in compliance with regulations or forms approved by the\nCommission.\n\nG. The Commission may promulgate reasonable regulations applicable to modified\nguaranteed contracts and to any separate accounts that may be established in\nconnection with such contracts.\n\nH. Reasonable actuarial expenses incurred in connection with approval of a\nmodified contract shall be paid by the person seeking approval of such a\ncontract.\n\nHISTORY: 1992, c. 210.","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}}