{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/38.2-3723.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/38.2-3723.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/38.2-3723.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/38.2-3723.html"}],"law_id":60031,"edition_id":1,"section_id":60031,"structure_id":15016,"section_number":"38.2-3723","catch_line":"Reserves","history":"1982, c. 223, \u00a7 38.1-482.12:1; 1986, c. 562, \u00a7 38.2-3715; 1992, c. 586; 2002, c. 72; 2009, c. 642; 2014, c. 571.","full_text":"A\n\nEach insurer licensed to write credit life insurance in the Commonwealth shall establish and maintain reserves on all its credit life insurance. The minimum standard for the valuation for such reserves:1\n\nFor both male and female insureds shall be the 2001 Commissioners’ Standard Ordinary (CSO) Male Composite Ultimate Mortality Table as adopted by the National Association of Insurance Commissioners;2\n\nWhere the credit life policy or certificate insures two lives shall be twice the 2001 CSO Male Composite Ultimate Mortality Table based on the age of the older insured;3\n\nShall use, for the interest rate calculation, the calendar year statutory valuation interest rates determined pursuant to § 38.2-1371; and4\n\nShall use, as the method of valuation, the Commissioners reserve valuation method set forth in § 38.2-1372.\n\t\t\t\tReserves may be calculated on an annual or a monthly basis with a reasonable assumption, subject to statistical proof, as to average ages at issue or at expiration.B\n\nEach insurer licensed to write credit accident and sickness insurance in the Commonwealth shall establish and maintain reserves on all its credit accident and sickness insurance. For contracts other than single premium credit disability contracts, the minimum standard for the valuation of such reserves shall be the total gross unearned premiums calculated by the actuarial method, but not less than the aggregate amounts calculated as of the valuation date by the refund formulas approved for the policies by the Commission pursuant to subsection C of \u00a7 38.2-3729. For single premium credit disability contracts, the minimum standard for valuation of such reserves:1\n\nFor plans having less than a 15-day elimination period, the morbidity standard shall be the 1985 Commissioners’ Individual Disability Table A as adopted by the NAIC (85CIDA) with claim incidence rates increased by 12 percent;2\n\nFor plans having a greater than 14-day elimination period, the morbidity standard shall be the 85CIDA for a 14-day elimination period with claim incidence rates increased by 12 percent; and3\n\nThe interest rate used shall be the calendar year statutory valuation interest rate for valuation of whole life insurance determined pursuant to § 38.2-1371.\n\t\t\t\tIt may be assumed that all business written in any calendar month was written as of the fifteenth of such month.C\n\nFor all credit life and disability contracts in the aggregate, if the net premium refund liability exceeds the aggregate recorded contract reserve, the insurer shall establish an additional reserve liability that is equal to the excess of the net refund liability over the contract reserve recorded. The net refund liability may include consideration of commission, premium tax, and other expenses recoverable. In all cases, such amounts shall be evaluated for probability of recovery.D\n\nIn no event shall the aggregate reserves for all policies, contracts and benefits be less than the aggregate reserves determined by a qualified actuary to be necessary to support fully the insurer’s obligations under its policies, certificates and contracts.","order_by":null,"text":{"0":{"id":219732,"text":"Each insurer licensed to write credit life insurance in the Commonwealth shall establish and maintain reserves on all its credit life insurance. The minimum standard for the valuation for such reserves:","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"A1"},"1":{"id":219733,"text":"For both male and female insureds shall be the 2001 Commissioners’ Standard Ordinary (CSO) Male Composite Ultimate Mortality Table as adopted by the National Association of Insurance Commissioners;","type":"section","prefixes":["A","1"],"prefix":"1","entire_prefix":"A1","prefix_anchor":"A1","level":2,"prior_prefix":"A","next_prefix":"A2"},"2":{"id":219734,"text":"Where the credit life policy or certificate insures two lives shall be twice the 2001 CSO Male Composite Ultimate Mortality Table based on the age of the older insured;","type":"section","prefixes":["A","2"],"prefix":"2","entire_prefix":"A2","prefix_anchor":"A2","level":2,"prior_prefix":"A1","next_prefix":"A3"},"3":{"id":219735,"text":"Shall use, for the interest rate calculation, the calendar year statutory valuation interest rates determined pursuant to § 38.2-1371; and","type":"section","prefixes":["A","3"],"prefix":"3","entire_prefix":"A3","prefix_anchor":"A3","level":2,"prior_prefix":"A2","next_prefix":"A4"},"4":{"id":219736,"text":"Shall use, as the method of valuation, the Commissioners reserve valuation method set forth in § 38.2-1372.\n\t\t\t\tReserves may be calculated on an annual or a monthly basis with a reasonable assumption, subject to statistical proof, as to average ages at issue or at expiration.","type":"section","prefixes":["A","4"],"prefix":"4","entire_prefix":"A4","prefix_anchor":"A4","level":2,"prior_prefix":"A3","next_prefix":"B"},"5":{"id":219737,"text":"Each insurer licensed to write credit accident and sickness insurance in the Commonwealth shall establish and maintain reserves on all its credit accident and sickness insurance. For contracts other than single premium credit disability contracts, the minimum standard for the valuation of such reserves shall be the total gross unearned premiums calculated by the actuarial method, but not less than the aggregate amounts calculated as of the valuation date by the refund formulas approved for the policies by the Commission pursuant to subsection C of \u00a7 38.2-3729. For single premium credit disability contracts, the minimum standard for valuation of such reserves:","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A4","next_prefix":"B1"},"6":{"id":219738,"text":"For plans having less than a 15-day elimination period, the morbidity standard shall be the 1985 Commissioners’ Individual Disability Table A as adopted by the NAIC (85CIDA) with claim incidence rates increased by 12 percent;","type":"section","prefixes":["B","1"],"prefix":"1","entire_prefix":"B1","prefix_anchor":"B1","level":2,"prior_prefix":"B","next_prefix":"B2"},"7":{"id":219739,"text":"For plans having a greater than 14-day elimination period, the morbidity standard shall be the 85CIDA for a 14-day elimination period with claim incidence rates increased by 12 percent; and","type":"section","prefixes":["B","2"],"prefix":"2","entire_prefix":"B2","prefix_anchor":"B2","level":2,"prior_prefix":"B1","next_prefix":"B3"},"8":{"id":219740,"text":"The interest rate used shall be the calendar year statutory valuation interest rate for valuation of whole life insurance determined pursuant to § 38.2-1371.\n\t\t\t\tIt may be assumed that all business written in any calendar month was written as of the fifteenth of such month.","type":"section","prefixes":["B","3"],"prefix":"3","entire_prefix":"B3","prefix_anchor":"B3","level":2,"prior_prefix":"B2","next_prefix":"C"},"9":{"id":219741,"text":"For all credit life and disability contracts in the aggregate, if the net premium refund liability exceeds the aggregate recorded contract reserve, the insurer shall establish an additional reserve liability that is equal to the excess of the net refund liability over the contract reserve recorded. The net refund liability may include consideration of commission, premium tax, and other expenses recoverable. In all cases, such amounts shall be evaluated for probability of recovery.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B3","next_prefix":"D"},"10":{"id":219742,"text":"In no event shall the aggregate reserves for all policies, contracts and benefits be less than the aggregate reserves determined by a qualified actuary to be necessary to support fully the insurer’s obligations under its policies, certificates and contracts.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C"}},"ancestry":[{"id":15016,"edition_id":1,"name":"Credit Life Insurance and Credit Accident and Sickness Insurance","identifier":"37.1","label":"chapter","depth":2,"order_by":1,"parent_id":12698,"metadata":{},"date_created":"2026-06-26 03:51:32","date_modified":"2026-06-26 03:51:32","permalink":{"id":216059,"object_type":"structure","relational_id":15016,"identifier":"37.1","token":"38.2\/37.1","url":"\/38.2\/37.1\/","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":78738,"structure_id":15016,"section_number":"38.2-3717","catch_line":"Scope","url":"\/38.2-3717\/","token":"38.2\/37.1\/38.2-3717","metadata":false},{"id":61942,"structure_id":15016,"section_number":"38.2-3718","catch_line":"Definitions","url":"\/38.2-3718\/","token":"38.2\/37.1\/38.2-3718","metadata":false},{"id":68352,"structure_id":15016,"section_number":"38.2-3719","catch_line":"Forms of credit life insurance and credit accident and sickness insurance","url":"\/38.2-3719\/","token":"38.2\/37.1\/38.2-3719","metadata":false},{"id":71214,"structure_id":15016,"section_number":"38.2-3720","catch_line":"Amount of credit life insurance and credit accident and sickness insurance","url":"\/38.2-3720\/","token":"38.2\/37.1\/38.2-3720","metadata":false},{"id":83437,"structure_id":15016,"section_number":"38.2-3721","catch_line":"Term of credit life insurance and credit accident and sickness insurance","url":"\/38.2-3721\/","token":"38.2\/37.1\/38.2-3721","metadata":false},{"id":74250,"structure_id":15016,"section_number":"38.2-3722","catch_line":"Variable interest rate indebtedness; amount; disclosure; refunds","url":"\/38.2-3722\/","token":"38.2\/37.1\/38.2-3722","metadata":false},{"id":60031,"structure_id":15016,"section_number":"38.2-3723","catch_line":"Reserves","url":"\/38.2-3723\/","token":"38.2\/37.1\/38.2-3723","metadata":false},{"id":72023,"structure_id":15016,"section_number":"38.2-3724","catch_line":"Policy provisions; disclosure to debtors; delivery of policy or certificate","url":"\/38.2-3724\/","token":"38.2\/37.1\/38.2-3724","metadata":false},{"id":79475,"structure_id":15016,"section_number":"38.2-3725","catch_line":"Policy forms to be filed with Commission; approval or disapproval by Commission","url":"\/38.2-3725\/","token":"38.2\/37.1\/38.2-3725","metadata":false},{"id":81616,"structure_id":15016,"section_number":"38.2-3726","catch_line":"Credit life insurance rates","url":"\/38.2-3726\/","token":"38.2\/37.1\/38.2-3726","metadata":false},{"id":64017,"structure_id":15016,"section_number":"38.2-3727","catch_line":"Credit accident and sickness insurance rates","url":"\/38.2-3727\/","token":"38.2\/37.1\/38.2-3727","metadata":false},{"id":67560,"structure_id":15016,"section_number":"38.2-3728","catch_line":"Use of rates","url":"\/38.2-3728\/","token":"38.2\/37.1\/38.2-3728","metadata":false},{"id":77928,"structure_id":15016,"section_number":"38.2-3729","catch_line":"Refunds","url":"\/38.2-3729\/","token":"38.2\/37.1\/38.2-3729","metadata":false},{"id":76093,"structure_id":15016,"section_number":"38.2-3730","catch_line":"Experience reports and adjustment of prima facie rates","url":"\/38.2-3730\/","token":"38.2\/37.1\/38.2-3730","metadata":false},{"id":63767,"structure_id":15016,"section_number":"38.2-3731","catch_line":"Claims","url":"\/38.2-3731\/","token":"38.2\/37.1\/38.2-3731","metadata":false},{"id":78709,"structure_id":15016,"section_number":"38.2-3732","catch_line":"Insurer delegation of duties","url":"\/38.2-3732\/","token":"38.2\/37.1\/38.2-3732","metadata":false},{"id":76840,"structure_id":15016,"section_number":"38.2-3733","catch_line":"Portion of premium may be allowed to creditor; insurance may be provided and serviced at creditor's place of business","url":"\/38.2-3733\/","token":"38.2\/37.1\/38.2-3733","metadata":false},{"id":63261,"structure_id":15016,"section_number":"38.2-3734","catch_line":"License requirements","url":"\/38.2-3734\/","token":"38.2\/37.1\/38.2-3734","metadata":false},{"id":57264,"structure_id":15016,"section_number":"38.2-3735","catch_line":"Disclosure and readability","url":"\/38.2-3735\/","token":"38.2\/37.1\/38.2-3735","metadata":false},{"id":71653,"structure_id":15016,"section_number":"38.2-3736","catch_line":"Noncontributory coverage","url":"\/38.2-3736\/","token":"38.2\/37.1\/38.2-3736","metadata":false},{"id":69488,"structure_id":15016,"section_number":"38.2-3737","catch_line":"Application","url":"\/38.2-3737\/","token":"38.2\/37.1\/38.2-3737","metadata":false},{"id":70889,"structure_id":15016,"section_number":"38.2-3738","catch_line":"What laws applicable","url":"\/38.2-3738\/","token":"38.2\/37.1\/38.2-3738","metadata":false}],"previous_section":{"id":74250,"structure_id":15016,"section_number":"38.2-3722","catch_line":"Variable interest rate indebtedness; amount; disclosure; refunds","url":"\/38.2-3722\/","token":"38.2\/37.1\/38.2-3722","metadata":false},"next_section":{"id":72023,"structure_id":15016,"section_number":"38.2-3724","catch_line":"Policy provisions; disclosure to debtors; delivery of policy or certificate","url":"\/38.2-3724\/","token":"38.2\/37.1\/38.2-3724","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-3723\/","history_text":"

This law was first created in 1982. The record of its establishment is cataloged in chapter 223 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 1982 \u201cActs\u201d aren\u2019t available online. It has been modified 5 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 1986, chapter 562; in 1992, chapter 586; in 2002, chapter 72<\/a>; in 2009, chapter 642<\/a>; in 2014, chapter 571<\/a>.<\/p>","references":false,"refers_to":[{"id":76954,"section_number":"38.2-1371","catch_line":"Computation of minimum standard by calendar year of issue","order_by":null,"url":"\/38.2-1371\/"},{"id":72346,"section_number":"38.2-1372","catch_line":"Reserve valuation method; life insurance and endowment benefits","order_by":null,"url":"\/38.2-1372\/"},{"id":77928,"section_number":"38.2-3729","catch_line":"Refunds","order_by":null,"url":"\/38.2-3729\/"}],"permalink":{"id":216085,"object_type":"law","relational_id":60031,"identifier":"38.2-3723","token":"38.2\/37.1\/38.2-3723","url":"\/38.2-3723\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/38.2-3723\/","token":"38.2\/37.1\/38.2-3723","dublin_core":{"Title":"Reserves","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-3723","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> Each insurer<\/span> licensed to write credit life insurance<\/span> in the Commonwealth shall establish and maintain reserves on all its credit life insurance<\/span>. The minimum standard for the valuation for such reserves: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> For both male and female insureds shall be the 2001 Commissioners<\/span>’ Standard Ordinary (CSO) Male Composite Ultimate Mortality Table as adopted by the National Association of Insurance<\/span> Commissioners<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Where the credit life policy or certificate insures two lives shall be twice the 2001 CSO Male Composite Ultimate Mortality Table based on the age of the older insured; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Shall use, for the interest rate<\/span> calculation, the calendar year statutory valuation interest rates<\/span><\/span> determined pursuant to § 38.2-1371<\/a>; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Shall use, as the method of valuation, the Commissioners<\/span> reserve valuation method set forth in § 38.2-1372<\/a>.\n\t\t\t\tReserves may be calculated on an annual or a monthly basis with a reasonable assumption, subject to statistical proof, as to average ages at issue<\/span> or at expiration. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> Each insurer<\/span> licensed to write credit accident and sickness insurance<\/span> in the Commonwealth shall establish and maintain reserves on all its credit accident and sickness insurance<\/span>. For contracts<\/span> other than single premium credit disability contracts<\/span>, the minimum standard for the valuation of such reserves shall be the total gross unearned premiums calculated by the actuarial method, but not less than the aggregate amounts calculated as of the valuation date by the refund formulas approved for the policies by the Commission<\/span> pursuant to subsection C of \u00a7 38.2-3729<\/a>. For single premium credit disability contracts<\/span>, the minimum standard for valuation of such reserves: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> For plans having less than a 15-day elimination period, the morbidity standard shall be the 1985 Commissioners<\/span>’ Individual Disability Table A as adopted by the NAIC (85CIDA) with claim incidence rates<\/span><\/span> increased by 12 percent; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> For plans having a greater than 14-day elimination period, the morbidity standard shall be the 85CIDA for a 14-day elimination period with claim incidence rates<\/span><\/span> increased by 12 percent; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> The interest rate<\/span> used shall be the calendar year statutory valuation interest rate<\/span> for valuation of whole life insurance<\/span> determined pursuant to § 38.2-1371<\/a>.\n\t\t\t\tIt may be assumed that all business written in any calendar month was written as of the fifteenth of such month. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> For all credit life and disability contracts<\/span> in the aggregate, if the net premium refund liability exceeds the aggregate recorded contract<\/span> reserve, the insurer<\/span> shall establish an additional reserve liability that is equal to the excess of the net refund liability over the contract<\/span> reserve recorded. The net refund liability may include consideration of commission<\/span>, premium tax, and other expenses recoverable. In all cases, such amounts shall be evaluated for probability of recovery. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> In no event shall the aggregate reserves for all policies, contracts<\/span> and benefits be less than the aggregate reserves determined by a qualified actuary to be necessary to support fully the insurer<\/span>’s obligations under its policies, certificates and contracts<\/span>. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nRESERVES (\u00a7 38.2-3723)\n\nA. Each insurer licensed to write credit life insurance in the Commonwealth\nshall establish and maintain reserves on all its credit life insurance. The\nminimum standard for the valuation for such reserves:\n\n 1. For both male and female insureds shall be the 2001 Commissioners’\n Standard Ordinary (CSO) Male Composite Ultimate Mortality Table as adopted by\n the National Association of Insurance Commissioners;\n\n 2. Where the credit life policy or certificate insures two lives shall be\n twice the 2001 CSO Male Composite Ultimate Mortality Table based on the age of\n the older insured;\n\n 3. Shall use, for the interest rate calculation, the calendar year statutory\n valuation interest rates determined pursuant to § 38.2-1371; and\n\n 4. Shall use, as the method of valuation, the Commissioners reserve valuation\n method set forth in § 38.2-1372.\n \t\t\t\tReserves may be calculated on an annual or a monthly basis with a\n reasonable assumption, subject to statistical proof, as to average ages at\n issue or at expiration.\n\nB. Each insurer licensed to write credit accident and sickness insurance in the\nCommonwealth shall establish and maintain reserves on all its credit accident\nand sickness insurance. For contracts other than single premium credit\ndisability contracts, the minimum standard for the valuation of such reserves\nshall be the total gross unearned premiums calculated by the actuarial method,\nbut not less than the aggregate amounts calculated as of the valuation date by\nthe refund formulas approved for the policies by the Commission pursuant to\nsubsection C of \u00a7 38.2-3729. For single premium credit disability contracts,\nthe minimum standard for valuation of such reserves:\n\n 1. For plans having less than a 15-day elimination period, the morbidity\n standard shall be the 1985 Commissioners’ Individual Disability Table A\n as adopted by the NAIC (85CIDA) with claim incidence rates increased by 12\n percent;\n\n 2. For plans having a greater than 14-day elimination period, the morbidity\n standard shall be the 85CIDA for a 14-day elimination period with claim\n incidence rates increased by 12 percent; and\n\n 3. The interest rate used shall be the calendar year statutory valuation\n interest rate for valuation of whole life insurance determined pursuant to\n § 38.2-1371.\n \t\t\t\tIt may be assumed that all business written in any calendar month was\n written as of the fifteenth of such month.\n\nC. For all credit life and disability contracts in the aggregate, if the net\npremium refund liability exceeds the aggregate recorded contract reserve, the\ninsurer shall establish an additional reserve liability that is equal to the\nexcess of the net refund liability over the contract reserve recorded. The net\nrefund liability may include consideration of commission, premium tax, and other\nexpenses recoverable. In all cases, such amounts shall be evaluated for\nprobability of recovery.\n\nD. In no event shall the aggregate reserves for all policies, contracts and\nbenefits be less than the aggregate reserves determined by a qualified actuary\nto be necessary to support fully the insurer’s obligations under its\npolicies, certificates and contracts.\n\nHISTORY: 1982, c. 223, \u00a7 38.1-482.12:1; 1986, c. 562, \u00a7 38.2-3715; 1992, c.\n586; 2002, c. 72; 2009, c. 642; 2014, c. 571.","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}}