Virginia Law

An insurer shall not enter into a contract under which any person undertakes, for a fee, to regularly furnish investment advice to such insurer with respect to its separate accounts maintained for variable life insurance policies unless:

1. The person providing such advice is registered as an investment advisor under the Investment Advisers Act of 1940 (15 USC § 80a-1 et seq.); or

2. The person providing such advice is an investment manager under the Employee Retirement Income Security Act of 1974 (29 USC § 1001 et seq.) with respect to the assets of each employee benefit plan allocated to the separate account; or

3. The insurer has filed with the Commission and continues to file annually the following information and statements concerning the proposed advisor;

a. The name and form of organization, state of organization, and its principal place of business;

b. The names and addresses of its partners, officers, directors, and persons performing similar functions, or if such an investment advisor be an individual, of such individual;

c. A written Standard of Conduct complying in substance with the requirements of 14VAC5-80-270 of this Article which has been adopted by the investment advisor and is applicable to the investment advisor, its officers, directors, and affiliates;

d. A statement provided by the proposed advisor as to whether the advisor or any person associated therewith;

(1) Has been convicted within 10 years of any felony or misdemeanor arising out of such person's conduct as an employee, salesman, officer or director or an insurance company, a banker, an insurance agent, a securities broker, or an investment advisor involving embezzlement, fraudulent conversion, or misappropriation of funds or securities, or involving the violation of Sections 1341, 1342, or 1343 of Title 18 of United States Code;

(2) Has been permanently or temporarily enjoined by order, judgment, or decree of any court of competent jurisdiction from acting as an investment advisor, underwriter, broker, or dealer, or as an affiliated person or as an employee of any investment company, bank, or insurance company, or from engaging in or continuing any conduct or practice in connection with any such activity;

(3) has been found by federal or state regulatory authorities to have willfully violated or have acknowledged willful violation of any provision of federal or state securities laws or state insurance laws or of any rule or regulation under any such laws; or

(4) has been censured, denied an investment advisor registration, had a registration as an investment advisor revoked or suspended, or has been barred or suspended from being associated with an investment advisor by order of federal or state regulatory authorities; and

e. Such investment advisory contract shall be in writing and provide that it may be terminated by the insurer without penalty to the insurer or the separate account upon no more than 60 days' written notice to the investment advisor.

The Commission may, after notice and opportunity for hearing, by order require such investment advisory contract to be terminated if it deems continued operation thereunder to be hazardous to the public or the insurer's policyholders.