                                 CODE OF VIRGINIA

GROUP-WIDE SUPERVISION OF INTERNATIONALLY ACTIVE INSURANCE GROUPS (§
38.2-1332.2)

A. The Commission is authorized to act as the group-wide supervisor for any
internationally active insurance group in accordance with the provisions of this
section. However, the Commission may otherwise acknowledge another regulatory
official as the group-wide supervisor where the internationally active insurance
group:

   1. Does not have substantial insurance operations in the United States;

   2. Has substantial insurance operations in the United States but not in the
   Commonwealth; or

   3. Has substantial insurance operations in the United States and the
   Commonwealth, but the Commission has determined pursuant to the factors set
   forth in subsections B and F that the other regulatory official is the
   appropriate group-wide supervisor.
   				An insurance holding company system that does not otherwise qualify as an
   internationally active insurance group may request that the Commission make a
   determination or acknowledgment as to a group-wide supervisor pursuant to this
   section.

B. In cooperation with other state, federal, and international regulatory
agencies, the Commission shall identify a single group-wide supervisor for an
internationally active insurance group. The Commission may determine that the
Commission is the appropriate group-wide supervisor for an internationally
active insurance group that conducts substantial insurance operations
concentrated in the Commonwealth. However, the Commission may acknowledge that a
regulatory official from another jurisdiction is the appropriate group-wide
supervisor for the internationally active insurance group. The Commission shall
consider the following factors when making a determination or acknowledgment
under this subsection:

   1. The place of domicile of the insurers within the internationally active
   insurance group that holds the largest share of the internationally active
   insurance group&#8217;s written premiums, assets, or liabilities;

   2. The place of domicile of the top-tiered insurer or insurers in the
   insurance holding company system of the internationally active insurance
   group;

   3. The location of the executive offices or largest operational offices of the
   internationally active insurance group;

   4. Whether another regulatory official is acting or is seeking to act as the
   group-wide supervisor under a regulatory system that the Commission determines
   to be:
   				a. Substantially similar to the system of regulation provided under the
   laws of the Commonwealth; or
   				b. Otherwise sufficient in terms of providing for group-wide supervision,
   enterprise risk analysis, and cooperation with other regulatory officials; and

   5. Whether another regulatory official acting or seeking to act as the
   group-wide supervisor provides the Commission with reasonably reciprocal
   recognition and cooperation.
   				However, a regulatory official identified under this section as the
   group-wide supervisor may determine that it is appropriate to acknowledge
   another supervisor to serve as the group-wide supervisor. The acknowledgment
   of the group-wide supervisor shall be made after consideration of the factors
   listed in subdivisions 1 through 5, and shall be made in cooperation with and
   subject to the acknowledgment of other regulatory officials involved with
   supervision of members of the internationally active insurance group and in
   consultation with the internationally active insurance group.

C. Notwithstanding any other provision of this section, the Commission&#8217;s
regulatory authority under this section shall not be impaired. To the extent
that the Commission acknowledges a regulatory official from another jurisdiction
as a group-wide supervisor and in the event of a material change in the
internationally active insurance group that results in (i) the internationally
active insurance group&#8217;s insurers domiciled in the Commonwealth holding
the largest share of the group&#8217;s premiums, assets, or liabilities or (ii)
the Commonwealth being the place of domicile of the top-tiered insurer or
insurers in the insurance holding company system of the internationally active
insurance group, the Commission may make a determination or acknowledgment as to
the appropriate group-wide supervisor for such an internationally active
insurance group pursuant to subsection B.

D. Pursuant to &#xA7; 38.2-1332, the Commission is authorized to collect from
any insurer registered pursuant to &#xA7; 38.2-1329 all information necessary to
determine whether the Commission may act as the group-wide supervisor of an
internationally active insurance group or if the Commission may acknowledge
another regulatory official to act as the group-wide supervisor. Prior to
issuing a determination that an internationally active insurance group is
subject to group-wide supervision by the Commission, the Commission shall notify
the insurer registered pursuant to &#xA7; 38.2-1329 and the ultimate controlling
person within the internationally active insurance group. The internationally
active insurance group shall have not less than 30 days to provide the
Commission with additional information pertinent to the pending determination.
The Commission shall publish in any manner it considers appropriate and on its
website the identity of internationally active insurance groups that the
Commission has determined are subject to group-wide supervision by the
Commission.

E. If the Commission is the group-wide supervisor for an internationally active
insurance group, the Commission is authorized to engage in any of the following
group-wide supervision activities:

   1. Assess the enterprise risks within the internationally active insurance
   group to ensure that:
   				a. The material financial condition and liquidity risks to the members of
   the internationally active insurance group that are engaged in the business of
   insurance are identified by management; and
   				b. Reasonable and effective mitigation measures are in place;

   2. Request, from any member of an internationally active insurance group
   subject to the Commission&#8217;s supervision, information necessary and
   appropriate to assess enterprise risk, including information about the members
   of the internationally active insurance group regarding:
   				a. Governance, risk assessment, and management;
   				b. Capital adequacy; and
   				c. Material intercompany transactions;

   3. Coordinate and, through the authority of the regulatory officials of the
   jurisdictions where members of the internationally active insurance group are
   domiciled, compel development and implementation of reasonable measures
   designed to ensure that the internationally active insurance group is able to
   timely recognize and mitigate enterprise risks to members of such
   internationally active insurance group that are engaged in the business of
   insurance;

   4. Communicate with other state, federal, and international regulatory
   agencies for members within the internationally active insurance group and
   share relevant information, subject to the confidentiality provisions of
   &#xA7; 38.2-1333, through supervisory colleges as set forth in &#xA7;
   38.2-1332.1 or otherwise;

   5. Enter into agreements with or obtain documentation from any insurer
   registered under &#xA7; 38.2-1329, any member of the internationally active
   insurance group, and any other state, federal, or international regulatory
   agencies for members of the internationally active insurance group, providing
   the basis for or otherwise clarifying the Commission&#8217;s role as
   group-wide supervisor, including provisions for resolving disputes with other
   regulatory officials. Such agreements or documentation shall not serve as
   evidence in any proceeding that any insurer or person within an insurance
   holding company system not domiciled or incorporated in the Commonwealth is
   doing business in the Commonwealth or is otherwise subject to jurisdiction in
   the Commonwealth; and

   6. Engage in other group-wide supervision activities, consistent with the
   authorities and purposes enumerated above, as considered necessary by the
   Commission.

F. If the Commission acknowledges that another regulatory official from a
jurisdiction that is not accredited by the NAIC is the group-wide supervisor,
the Commission is authorized to reasonably cooperate, through supervisory
colleges or otherwise, with group-wide supervision undertaken by the group-wide
supervisor, provided that:

   1. The Commission&#8217;s cooperation is in compliance with the laws of the
   Commonwealth; and

   2. The regulatory official acknowledged as the group-wide supervisor also
   recognizes and cooperates with the Commission&#8217;s activities as a
   group-wide supervisor for other internationally active insurance groups where
   applicable. Where such recognition and cooperation is not reasonably
   reciprocal, the Commission is authorized to refuse recognition and
   cooperation.

G. The Commission is authorized to enter into agreements with or obtain
documentation from any insurer registered under &#xA7; 38.2-1329, any affiliate
of the insurer, and other state, federal, or international regulatory agencies
for members of the internationally active insurance group that provide the basis
for or otherwise clarify a regulatory official&#8217;s role as group-wide
supervisor.

H. Each registered insurer subject to this section shall be liable for and shall
pay the necessary traveling and other expenses incurred by the Commission for
its participation in the administration of this section. The Commission may
retain at the registered insurer&#8217;s expense any attorneys, actuaries,
accountants, and other experts reasonably necessary to assist in the
administration of this section. Any persons so retained shall be under the
direction and control of the Commission and shall act in a purely advisory
capacity. The Commission may establish a regular assessment to the insurer for
the payment of these expenses. If an assessment is required by this subsection,
it shall be collected by the Commission and paid directly into the state
treasury and credited to the &#8220;Bureau of Insurance Special Fund &#x2014;
State Corporation Commission&#8221; for the maintenance of the Bureau of
Insurance as provided in subsection B of &#xA7; 38.2-400.

HISTORY: 2019, c. 692.