Section 20. Delivery of variable contracts

Article II. Qualification of Insurance Companies to Issue "Variable Contracts"

A. No company shall deliver or issue for delivery variable contracts within this Commonwealth unless (i) it is licensed to do a life insurance or annuity business in this Commonwealth; and (ii) the Commission is satisfied that its condition or method of operation in connection with the issuance of such contracts will not render its operation hazardous to the public or its policyholders in this Commonwealth. In this connection, the Commission shall consider among other things:

1. The history and financial condition of the company;

2. The character, responsibility and fitness of the officers and directors of the company; and

3. The law and regulation under which the company is authorized in the state of domicile to issue variable contracts.

B. If the company is a subsidiary of an admitted life insurance company or affiliated with such company by common management or ownership, it may be deemed by the Commission to have satisfied the provisions of subdivision (ii) of subsection A hereof if either it or such admitted life company satisfies the aforementioned provisions; provided, further, that companies licensed and having a satisfactory record of doing business in this Commonwealth for a period of at least three years may be deemed to have satisfied the Commission with respect to subdivision (ii) of subsection A.

C. Before any company shall deliver or issue for delivery variable contracts within this Commonwealth, it shall submit to the Commission (i) a general description of the kinds of variable contracts it intends to issue; (ii) if requested by the Commission, a copy of the statutes and regulations of its state of domicile under which it is authorized to issue variable contracts and (iii) if requested by the Commission, biographical data with respect to officers and directors of the company on the NAIC uniform biographical data form.

Historical Notes

Derived from Regulation 3, Case No. 18623, § 3, eff. March 1, 1969.

Statutory Authority

§ 38.2-3113 of the Code of Virginia.