14VAC5-280-70:1. EXHIBIT 1. SIGNIFICANT RISKS TABLE.

EXHIBIT 1. SIGNIFICANT RISKS TABLE

PRODUCT OR TYPE OF BUSINESS		RISK CATEGORIES**
PRODUCT OR TYPE OF BUSINESS		a	b	c	d	e	f
Health Insurance--other than LTC/LTD*		+	0	+	0	0	0
Health Insurance--LTC/LTD*		+	0	+	+	+	0
Immediate Annuities		0	+	0	+	+	0
Single Premium Deferred Annuities		0	0	+	+	+	+
Flexible Premium Deferred Annuities		0	0	+	+	+	+
Guaranteed Interest Contracts		0	0	0	+	+	+
Other Annuity Deposit Business		0	0	+	+	+	+
Single Premium Whole Life		0	+	+	+	+	+
Traditional Nonparticipating Permanent		0	+	+	+	+	+
Traditional Nonparticipating Term		0	+	+	0	0	0
Traditional Participating Permanent		0	+	+	+	+	+
Traditional Participating Term		0	+	+	0	0	0
Adjustable Premium Permanent		0	+	+	+	+	+
Indeterminate Premium Permanent		0	+	+	+	+	+
Universal Life Flexible Premium		0	+	+	+	+	+
Universal Life Fixed Premium		0	+	+	+	+	+
Universal Life Fixed Premium (dump-in premiums allowed)		0	+	+	+	+	+
+ = Significant; 0 = Insignificant
*LTC = Long Term Care Insurance; LTD = Long Term Disability Insurance
**Risk Categories:
	(a) Morbidity.
	(b) Mortality.
	(c) Lapse. This is the risk that a policy will voluntarily terminate prior to the recoupment of a statutory surplus strain experienced at issue of the policy.
	(d) Credit Quality (C1). This is the risk that invested assets supporting the reinsured business will decrease in value. The main hazards are that assets will default or that there will be a decrease in earning power. It excludes market value declines due to changes in interest rates.
	(e) Reinvestment (C3). This is the risk that interest rates will fall and funds reinvested (coupon payments or moneys received upon asset maturity or call) will therefore earn less than expected. If asset durations are less than liability durations, the mismatch will increase.
	(f) Disintermediation (C3). This is the risk that interest rates rise and policy loans and surrenders increase or maturing contracts do not renew at anticipated rates of renewal. If asset durations are greater than the liability durations, the mismatch will increase. Policyholders will move their funds into new products offering higher rates. The company may have to sell assets at a loss to provide for these withdrawals.

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