                                 CODE OF VIRGINIA

DEFINITIONS (§ 38.2-1365)

As used in this article, unless the context requires a different meaning:
		&#8220;Accident and health insurance&#8221; means contracts that incorporate
morbidity risk and provide protection against economic loss resulting from
accident, sickness, or medical conditions and as may be specified in the
valuation manual.
		&#8220;Appointed actuary&#8221; means a qualified actuary who is appointed in
accordance with the valuation manual to prepare the actuarial opinion required
in subsection B of § 38.2-1367.
		&#8220;Deposit-type contract&#8221; means contracts that do not incorporate
mortality or morbidity risks and as may be specified in the valuation manual.
		&#8220;Insurance company&#8221; or &#8220;insurer&#8221; means an entity that
(i) has written, issued, or reinsured life insurance contracts, accident and
health insurance contracts, or deposit-type contracts in the Commonwealth and
has at least one such policy in force or on claim or (ii) has written, issued,
or reinsured life insurance contracts, accident and health insurance contracts,
or deposit-type contracts in any state and is required to hold a certificate of
authority to write life insurance, accident and health insurance, or
deposit-type contracts in the Commonwealth.
		&#8220;Life insurance&#8221; means contracts that incorporate mortality risk,
including annuity and pure endowment contracts, and as may be specified in the
valuation manual.
		&#8220;NAIC&#8221; means the National Association of Insurance Commissioners.
		&#8220;Policyholder behavior&#8221; means any action a policyholder, contract
holder or any other person with the right to elect options, such as a
certificate holder, may take under a policy or contract subject to this article,
including, but not limited to, lapse, withdrawal, transfer, deposit, premium
payment, loan, annuitization, or benefit elections prescribed by the policy or
contract but excluding events of mortality or morbidity that result in benefits
prescribed in their essential aspects by the terms of the policy or contract.
		&#8220;Principle-based valuation&#8221; means a reserve valuation that uses
one or more methods or one or more assumptions determined by the insurer and is
required to comply with § 38.2-1380 as specified in the valuation manual.
		&#8220;Qualified actuary&#8221; means an individual who is qualified to sign
the applicable statement of actuarial opinion in accordance with the American
Academy of Actuaries qualification standards for actuaries signing such
statements and who meets the requirements specified in the valuation manual.
		&#8220;Tail risk&#8221; means a risk that occurs either where the frequency of
low probability events is higher than expected under a normal probability
distribution or where there are observed events of very significant size or
magnitude.
		&#8220;Valuation manual&#8221; means the manual of valuation instructions
adopted by the NAIC as specified in this article or as subsequently amended.

HISTORY: 2014, c. 571.