                                 CODE OF VIRGINIA

RESERVES REQUIRED (§ 38.2-3923)

In addition to providing for claims incurred but not settled, mutual assessment
life, accident and sickness insurers shall maintain the following reserve
liabilities:

1. Life policies written with the right to make additional assessments shall
have reserves established as a single group in the same manner as group annual
renewable term insurance is reserved for insurers licensed pursuant to Chapter
10 (&#xA7; 38.2-1000 et seq.) of this title.

2. Life or annuity policies written without the right to make additional
assessments shall have reserves established using the standard valuation
provisions required of insurers licensed under Chapter 10 of this title issuing
similar types of policies.

3. Accident and sickness policies shall have reserves established in accordance
with regulations promulgated by the Commission for insurers licensed pursuant to
Chapter 10 of this title.

4. The foregoing reserve computations for statutory accounting purposes shall be
applicable to all policies hereafter in existence and shall supersede any
separate reserve requirement or separate mortuary funds that have been
previously used, pursuant to statute, custom or policy provision.

HISTORY: 1985, c. 400, § 38.1-549.24; 1986, c. 562.