                                 CODE OF VIRGINIA

RESERVE VALUATION (§ 38.2-1366)

A. For policies and contracts issued prior to the operative date of the
valuation manual:

   1. The Commission shall annually value, or cause to be valued, the reserve
   liabilities (hereinafter called reserves) for all outstanding life insurance
   policies and annuity and pure endowment contracts of every life insurance
   company doing business in the Commonwealth issued prior to the operative date
   of the valuation manual. In calculating reserves, the Commission may use group
   methods and approximate averages for fractions of a year or otherwise. In lieu
   of the valuation of the reserves required of a foreign or alien company, the
   Commission may accept a valuation made, or caused to be made, by the insurance
   supervisory official of any state or other jurisdiction when the valuation
   complies with the minimum standard provided in this article.

   2. The provisions set forth in &#xA7;&#xA7; 38.2-1368 through 38.2-1378 shall
   apply to all policies and contracts, as appropriate, subject to this article
   issued prior to the operative date of the valuation manual and the provisions
   set forth in &#xA7;&#xA7; 38.2-1379 and 38.2-1380 shall not apply to any such
   policies and contracts.

B. For policies and contracts issued on or after the operative date of the
valuation manual:

   1. The Commission shall annually value, or cause to be valued, the reserve
   liabilities (hereinafter called reserves) for all outstanding life insurance
   contracts, annuity and pure endowment contracts, accident and health
   contracts, and deposit-type contracts of every insurance company issued on or
   after the operative date of the valuation manual. In lieu of the valuation of
   the reserves required of a foreign or alien company, the Commission may accept
   a valuation made, or caused to be made, by the insurance supervisory official
   of any state or other jurisdiction when the valuation complies with the
   minimum standard provided in this article.

   2. The provisions set forth in &#xA7;&#xA7; 38.2-1379 and 38.2-1380 shall
   apply to all policies and contracts issued on or after the operative date of
   the valuation manual.

C. On or before the last day of February of each year, every domestic
incorporated life insurer shall furnish the Commission the necessary data for
determining the valuation of all of its policies outstanding on the last
preceding December 31. For good cause shown, the Commission may extend an
insurer&#8217;s deadline for submitting this data.

HISTORY: 2014, c. 571.