                                 CODE OF VIRGINIA

SCOPE OF ARTICLE; EXEMPTION (§ 38.2-1334.7)

A. The requirements of this article shall apply to all insurers domiciled in the
Commonwealth unless exempt pursuant to this section.

B. An insurer shall be exempt from the requirements of this article if:

   1. The insurer has annual direct written and unaffiliated assumed premium,
   including international direct and assumed premium but excluding premiums
   reinsured with the Federal Crop Insurance Corporation and National Flood
   Insurance Program, less than $500 million; and

   2. The insurance group of which the insurer is a member has annual direct
   written and unaffiliated assumed premium, including international direct and
   assumed premium but excluding premiums reinsured with the Federal Crop
   Insurance Corporation and National Flood Insurance Program, less than $1
   billion.

C. If an insurer qualifies for exemption pursuant to subdivision B 1, but the
insurance group of which the insurer is a member does not qualify for exemption
pursuant to subdivision B 2, then the ORSA summary report that may be required
pursuant to &#xA7; 38.2-1334.6 shall include every insurer within the insurance
group. This requirement may be satisfied by the submission of more than one ORSA
summary report for any combination of insurers, provided any combination of
reports includes every insurer within the insurance group.

D. If an insurer does not qualify for exemption pursuant to subdivision B 1, but
the insurance group of which it is a member qualifies for exemption pursuant to
subdivision B 2, then the only ORSA summary report that may be required pursuant
to &#xA7; 38.2-1334.6 shall be the report applicable to that insurer.

E. An insurer that does not qualify for exemption pursuant to subsection B may
apply to the Commission for a waiver from the requirements of this article based
upon unique circumstances. In deciding whether to grant the insurer&#8217;s
request for waiver, the Commission may consider the type and volume of business
written, ownership and organizational structure, and any other factor the
Commission considers relevant to the insurer or insurance group of which the
insurer is a member. If the insurer is part of an insurance group with insurers
domiciled in more than one state, the Commission shall coordinate with the lead
state commissioner and with the other domiciliary commissioners in considering
whether to grant the insurer&#8217;s request for a waiver.

F. Notwithstanding the exemptions stated in this section:

   1. The Commission may require that an insurer maintain a risk management
   framework, conduct an ORSA, and file an ORSA summary report based on unique
   circumstances, including the type and volume of business written, ownership
   and organizational structure, federal agency requests, and international
   supervisor requests.

   2. The Commission may require that an insurer maintain a risk management
   framework, conduct an ORSA, and file an ORSA summary report if the insurer has
   risk-based capital for company action level event as set forth in &#xA7;
   38.2-5503, meets one or more of the standards of an insurer deemed to be in
   hazardous financial condition as defined in 14VAC5-290-30 of the Virginia
   Administrative Code, or otherwise exhibits qualities of a troubled insurer as
   determined by the Commission.

G. If an insurer that qualifies for an exemption pursuant to subsection B
subsequently no longer qualifies for that exemption due to changes in premium as
reflected in the insurer&#8217;s most recent annual statement or in the most
recent annual statements of the insurers within the insurance group of which the
insurer is a member, the insurer shall have one year following the year the
threshold is exceeded to comply with the requirements of this article.

HISTORY: 2014, c. 248.