Section 60. Existing agreements

Notwithstanding 14VAC5-280-40 A of this chapter, insurers subject to this regulation may continue to reduce liabilities or establish assets in financial statements filed with the commission for reinsurance ceded under types of reinsurance agreements described in 14VAC5-280-20 and 14VAC5-280-40, provided:

1. The agreements were executed and in force prior to April 1, 1995;

2. The reduction of the liability or the asset established for the reinsurance ceded is reduced to 0 by December 31, 1995;

3. The reduction of the liability or the establishment of the asset was not prohibited by the commission's Rules Establishing Standards for Life, Annuity, and Accident and Sickness Reinsurance Agreements, which were adopted, effective December 1, 1991, by order of the commission entered October 24, 1991, in Case No. 910220 and which were in effect immediately prior to April 1, 1995, the effective date of these revised rules, and is otherwise permissible under all other applicable provisions of the laws of this Commonwealth, particularly the provisions of Title 38.2 of the Code of Virginia and related rules, regulations and administrative pronouncements, including actuarial interpretations or standards adopted by the commission; and

4. The commission is notified, on or before June 30, 1995, of the existence of such reinsurance agreements and all corresponding reserve credits taken or assets established in the ceding insurer's 1994 Annual Statement.

Historical Notes

Derived from Regulation 41, Case No. INS910220, § 6, effective December 1, 1991; amended, Case No. INS940204, Volume 11, Issue 11, eff. April 1, 1995.

Statutory Authority

§§ 12.1-13, 38.2-223 and 38.2-1316.7 of the Virginia Code.