                                 CODE OF VIRGINIA

OPTIONAL RESERVE CALCULATION (§ 38.2-1375)

A. Reserves for any category of policies, contracts, or benefits as established
by the Commission may be calculated, at the insurer&#8217;s option, according to
any standards that produce greater aggregate reserves for the category than
those calculated according to the minimum standard provided in this article, but
the rate or rates of interest used for policies and contracts other than annuity
and pure endowment contracts shall not be higher than the corresponding rate or
rates of interest used in calculating any nonforfeiture benefits provided for in
those policies and contracts.

B. An insurer that adopts at any time a standard of valuation producing greater
aggregate reserves than those calculated according to the minimum standard
provided under this article may adopt a lower standard of valuation with the
approval of the Commission, but not lower than the minimum provided herein,
provided that, for the purposes of this section, the holding of additional
reserves previously determined by the appointed actuary to be necessary to
render the opinion required by &#xA7; 38.2-1367 shall not be deemed to be the
adoption of a higher standard of valuation.

HISTORY: 2014, c. 571.