{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/38.2-3113.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/38.2-3113.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/38.2-3113.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/38.2-3113.html"}],"law_id":57329,"edition_id":1,"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","history":"1966, c. 289, \u00a7 38.1-443; 1976, c. 562; 1986, c. 562.","full_text":"A\n\nEach domestic insurer that issues life insurance or annuities providing for payments that vary directly according to investment experience shall establish one or more separate accounts in connection with these types of life insurance or annuities. All amounts received by the insurer that are required by contract to be applied to provide for variable payments shall be added to the appropriate separate account. The assets of any such separate account shall not be chargeable with liabilities arising out of any other business the insurer may conduct. Any surplus or deficit that may arise in any separate account by virtue of mortality experience shall be adjusted by withdrawals from or additions to the account so that the assets of the account shall always at least equal the assets required to satisfy the insurer’s obligations for the variable payments.B\n\nA foreign or alien insurer licensed to do business in this Commonwealth may be licensed to deliver or issue for delivery life insurance or annuity contracts in this Commonwealth providing for payments which vary directly according to investment experience only if authorized to issue such life insurance or annuity contracts under the laws of its domicile.C\n\nNo domestic, foreign, or alien insurer shall be licensed to deliver or issue for delivery variable life insurance or variable annuity contracts in this Commonwealth, until the insurer has satisfied the Commission that its condition and methods of operation in connection with the issuance of variable life insurance or variable annuity contracts will not render its operation hazardous to the public or to its policyholders in this Commonwealth. In determining the qualification of an insurer to deliver or issue for delivery such variable life insurance or variable annuity 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.D\n\nEach insurer that delivers or issues for delivery variable life insurance or variable annuity contracts in this Commonwealth 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.E\n\nThe provisions of this section shall not apply to any contracts or policies which do not provide for payments which vary directly according to investment experience.F\n\nAny domestic life insurer that establishes one or more separate accounts pursuant to this section may amend its charter to provide for special voting rights and procedures for the owners of variable life insurance or variable annuity contracts relating to investment policy, investment advisory services and selection of certified public accountants, in relation to the administration of the assets in any such separate account. This subsection shall not in any way affect existing laws pertaining to the voting rights of the insurer’s policyholders.","order_by":null,"text":{"0":{"id":209982,"text":"Each domestic insurer that issues life insurance or annuities providing for payments that vary directly according to investment experience shall establish one or more separate accounts in connection with these types of life insurance or annuities. All amounts received by the insurer that are required by contract to be applied to provide for variable payments shall be added to the appropriate separate account. The assets of any such separate account shall not be chargeable with liabilities arising out of any other business the insurer may conduct. Any surplus or deficit that may arise in any separate account by virtue of mortality experience shall be adjusted by withdrawals from or additions to the account so that the assets of the account shall always at least equal the assets required to satisfy the insurer’s obligations for the variable payments.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":209983,"text":"A foreign or alien insurer licensed to do business in this Commonwealth may be licensed to deliver or issue for delivery life insurance or annuity contracts in this Commonwealth providing for payments which vary directly according to investment experience only if authorized to issue such life insurance or annuity contracts under the laws of its domicile.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":209984,"text":"No domestic, foreign, or alien insurer shall be licensed to deliver or issue for delivery variable life insurance or variable annuity contracts in this Commonwealth, until the insurer has satisfied the Commission that its condition and methods of operation in connection with the issuance of variable life insurance or variable annuity contracts will not render its operation hazardous to the public or to its policyholders in this Commonwealth. In determining the qualification of an insurer to deliver or issue for delivery such variable life insurance or variable annuity 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":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"D"},"3":{"id":209985,"text":"Each insurer that delivers or issues for delivery variable life insurance or variable annuity contracts in this Commonwealth 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":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C","next_prefix":"E"},"4":{"id":209986,"text":"The provisions of this section shall not apply to any contracts or policies which do not provide for payments which vary directly according to investment experience.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D","next_prefix":"F"},"5":{"id":209987,"text":"Any domestic life insurer that establishes one or more separate accounts pursuant to this section may amend its charter to provide for special voting rights and procedures for the owners of variable life insurance or variable annuity contracts relating to investment policy, investment advisory services and selection of certified public accountants, in relation to the administration of the assets in any such separate account. This subsection shall not in any way affect existing laws pertaining to the voting rights of the insurer’s policyholders.","type":"section","prefixes":["F"],"prefix":"F","entire_prefix":"F","prefix_anchor":"F","level":1,"prior_prefix":"E"}},"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":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},"next_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","url":"\/38.2-3113.1\/","token":"38.2\/31\/1\/38.2-3113.1","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-3113\/","history_text":"

This law was first created in 1966. The record of its establishment is cataloged in chapter 289 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 1966 \u201cActs\u201d aren\u2019t available online. It has been modified 2 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 1976, chapter 562; in 1986, chapter 562.<\/p>","references":[{"id":57228,"section_number":"38.2-105","catch_line":"Variable life","order_by":null,"url":"\/38.2-105\/"},{"id":64558,"section_number":"38.2-107","catch_line":"Variable annuity","order_by":null,"url":"\/38.2-107\/"},{"id":55404,"section_number":"38.2-1443","catch_line":"Investment of amounts allocated to separate accounts for variable life insurance and variable annuities","order_by":null,"url":"\/38.2-1443\/"}],"refers_to":[{"id":81115,"section_number":"38.2-1300","catch_line":"Annual statements","order_by":null,"url":"\/38.2-1300\/"}],"permalink":{"id":214403,"object_type":"law","relational_id":57329,"identifier":"38.2-3113","token":"38.2\/31\/1\/38.2-3113","url":"\/38.2-3113\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/38.2-3113\/","token":"38.2\/31\/1\/38.2-3113","dublin_core":{"Title":"Variable life insurance and variable annuities; separate accounts to be established; authority to issue; reports; special voting rights and procedures for owners","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-3113","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> Each domestic insurer<\/span> that issues<\/span> life insurance<\/span> or annuities providing for payments that vary directly according to investment experience shall establish one or more separate accounts in connection with these types of life insurance<\/span> or annuities. All amounts received by the insurer<\/span> that are required by contract<\/span> to be applied to provide for variable payments shall be added to the appropriate separate account. The assets<\/span> of any such separate account shall not be chargeable with liabilities arising out of any other business the insurer<\/span> may conduct. Any surplus or deficit that may arise in any separate account by virtue of mortality experience shall be adjusted by withdrawals from or additions to the account so that the assets<\/span> of the account shall always at least equal the assets<\/span> required to satisfy the insurer<\/span>’s obligations for the variable payments. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> A foreign or alien insurer<\/span> licensed to do business in this Commonwealth may be licensed to deliver or issue<\/span> for delivery life insurance<\/span> or annuity contracts<\/span> in this Commonwealth providing for payments which vary directly according to investment experience only if authorized to issue<\/span> such life insurance<\/span> or annuity contracts<\/span> under the laws<\/span> of its domicile. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> No domestic, foreign, or alien insurer<\/span> shall be licensed to deliver or issue<\/span> for delivery variable life insurance<\/span> or variable annuity contracts<\/span> in this Commonwealth, until the insurer<\/span> has satisfied the Commission<\/span> that its condition and methods of operation in connection with the issuance of variable life insurance<\/span> or variable annuity contracts<\/span> will not render its operation hazardous to the public or to its policyholders in this Commonwealth. In determining the qualification of an insurer<\/span> to deliver or issue<\/span> for delivery such variable life insurance<\/span> or variable annuity contracts<\/span> in this Commonwealth, the Commission<\/span> shall consider, but shall not be limited to considering, the following: (i) the history and financial condition of the insurer<\/span>; (ii) the character, responsibility, and general fitness of the officers and directors of the insurer<\/span>; and, (iii) in the case of a foreign or alien insurer<\/span>, whether the regulation provided by the 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 Commission<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> Each insurer<\/span> that delivers or issues<\/span> for delivery variable life insurance<\/span> or variable annuity contracts<\/span> in this Commonwealth 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

E.<\/span> The provisions of this section shall not apply to any contracts<\/span> or policies which do not provide for payments which vary directly according to investment experience. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

F.<\/span> Any domestic life insurer<\/span> that establishes one or more separate accounts pursuant to this section may amend<\/span> its charter to provide for special voting rights and procedures for the owners of variable life insurance<\/span> or variable annuity contracts<\/span> relating to investment policy, investment advisory services and selection of certified public accountants, in relation to the administration of the assets<\/span> in any such separate account. This subsection shall not in any way affect existing laws<\/span> pertaining to the voting rights of the insurer<\/span>’s policyholders. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nVARIABLE LIFE INSURANCE AND VARIABLE ANNUITIES; SEPARATE ACCOUNTS TO BE\nESTABLISHED; AUTHORITY TO ISSUE; REPORTS; SPECIAL VOTING RIGHTS AND PROCEDURES\nFOR OWNERS (\u00a7 38.2-3113)\n\nA. Each domestic insurer that issues life insurance or annuities providing for\npayments that vary directly according to investment experience shall establish\none or more separate accounts in connection with these types of life insurance\nor annuities. All amounts received by the insurer that are required by contract\nto be applied to provide for variable payments shall be added to the appropriate\nseparate account. The assets of any such separate account shall not be\nchargeable with liabilities arising out of any other business the insurer may\nconduct. Any surplus or deficit that may arise in any separate account by virtue\nof mortality experience shall be adjusted by withdrawals from or additions to\nthe account so that the assets of the account shall always at least equal the\nassets required to satisfy the insurer’s obligations for the variable\npayments.\n\nB. A foreign or alien insurer licensed to do business in this Commonwealth may\nbe licensed to deliver or issue for delivery life insurance or annuity contracts\nin this Commonwealth providing for payments which vary directly according to\ninvestment experience only if authorized to issue such life insurance or annuity\ncontracts under the laws of its domicile.\n\nC. No domestic, foreign, or alien insurer shall be licensed to deliver or issue\nfor delivery variable life insurance or variable annuity contracts in this\nCommonwealth, until the insurer has satisfied the Commission that its condition\nand methods of operation in connection with the issuance of variable life\ninsurance or variable annuity contracts will not render its operation hazardous\nto the public or to its policyholders in this Commonwealth. In determining the\nqualification of an insurer to deliver or issue for delivery such variable life\ninsurance or variable annuity contracts in this Commonwealth, the Commission\nshall consider, but shall not be limited to considering, the following: (i) the\nhistory and financial condition of the insurer; (ii) the character,\nresponsibility, and general fitness of the officers and directors of the\ninsurer; 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\nD. Each insurer that delivers or issues for delivery variable life insurance or\nvariable annuity contracts in this Commonwealth shall file with the Commission,\nin addition to the annual statement required by § 38.2-1300, any other\nperiodic or special reports the Commission prescribes.\n\nE. The provisions of this section shall not apply to any contracts or policies\nwhich do not provide for payments which vary directly according to investment\nexperience.\n\nF. Any domestic life insurer that establishes one or more separate accounts\npursuant to this section may amend its charter to provide for special voting\nrights and procedures for the owners of variable life insurance or variable\nannuity contracts relating to investment policy, investment advisory services\nand selection of certified public accountants, in relation to the administration\nof the assets in any such separate account. This subsection shall not in any way\naffect existing laws pertaining to the voting rights of the insurer’s\npolicyholders.\n\nHISTORY: 1966, c. 289, \u00a7 38.1-443; 1976, c. 562; 1986, c. 562.","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}}