Virginia Administrative Code
Title 14 - INSURANCE
Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE
Chapter 70 - RULES GOVERNING ACCELERATED BENEFITS PROVISIONS
Section 14VAC5-70-130 - Actuarial disclosure and reserves
Universal Citation: 4 VA Admin Code 5-70-130
Current through Register Vol. 41, No. 3, September 23, 2024
A. A qualified actuary shall be required to describe the accelerated benefits, the risks, the expected costs and the calculation of statutory reserves in an actuarial memorandum accompanying each filing. The insurer shall maintain in its files descriptions of the bases and procedures used to calculate benefits payable under these provisions. These descriptions shall be made available for examination by the commission upon request.
B.
1. When benefits are provided through the
acceleration of benefits under group or individual life policies or riders to
such policies, policy reserves shall be determined in accordance with
§§ 38.2-1365 through 38.2-1385 of the Code of Virginia. All valuation
assumptions used in constructing the reserves shall be determined as
appropriate for statutory valuation purposes by a member in good standing of
the American Academy of Actuaries. Mortality tables and interest currently
recognized for life insurance reserves by the National Association of Insurance
Commissioners may be used as well as appropriate assumptions for the other
provisions incorporated in the policy form. The actuary must follow both
actuarial standards and certification for good and sufficient reserves.
Reserves in the aggregate should be sufficient to cover:
a. Policies upon which no claim has yet
arisen.
b. Policies upon which an
accelerated claim has arisen.
2. For policies and certificates which
provide actuarially equivalent benefits, no additional reserves need to be
established.
3. Policy liens and
policy loans, including accrued interest, represent assets of the company for
statutory reporting purposes. For any policy on which the policy lien exceeds
the policy's statutory reserve liability such excess must be held as a
nonadmitted asset.
Statutory Authority: §§ 12.1-13 and 38.2-223 of the Code of Virginia.
Disclaimer: These regulations may not be the most recent version. Virginia may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
This site is protected by reCAPTCHA and the Google
Privacy Policy and
Terms of Service apply.
