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Virginia Administrative Code
Title 14. Insurance
Agency 5. State Corporation Commission, Bureau of Insurance
Chapter 80. Rules Governing Variable Life Insurance
11/5/2024

14VAC5-80-200. Establishment and administration of separate accounts.

Article VI
Separate Accounts

The following requirements apply to the establishment and administration of variable life insurance separate accounts by any domestic insurer.

Any domestic insurer issuing variable life insurance shall establish one or more separate accounts pursuant to § 38.2-3113 of the Code of Virginia.

1. If no law or other regulation provides for the custody of separate account assets and if such insurer is not the custodian of such separate account assets, all contracts for custody of such assets shall be in writing and the Commission shall have authority to review and approve or disapprove of both the terms of any such contract and the proposed custodian prior to the transfer of custody.

2. Such insurer shall not without the prior written approval of the Commission employ in any material capacity in connection with the handling of separate account assets any person who:

a. Within the last 10 years has been convicted of any felony or a misdemeanor arising out of such person's conduct involving embezzlement, fraudulent conversion, or misappropriation of funds or securities or involving violation of Sections 1341, 1342, or 1343 of Title 18, United States Code; or

b. Within the last 10 years has been found by any state regulatory authority to have violated or has acknowledged violation of any provision of any state insurance law involving fraud, deceit, or knowing misrepresentation; or

c. Within the last 10 years has been found by federal or state regulatory authorities to have violated or has acknowledged violation of any provision of federal or state securities laws involving fraud, deceit, or knowing misrepresentation.

3. All persons with access to the cash, securities, or other assets of the separate account shall be under bond in the amount of not less than a value indexed to the National Association of Insurance Commissioners fidelity bonding recommendations regarding personnel handling general account assets or as determined by the Commission.

4. The assets of such separate accounts shall be valued at least as often as variable benefits are determined but in any event at least monthly.

Statutory Authority

§§ 12.1-13 and 38.2-3313 of the Code of Virginia.

Historical Notes

Derived from Regulation 26, Case No. INS920077, Article VII, § 1, eff. June 15, 1992.

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