Article III. Qualification of Insurer to Issue Variable Life Insurance
14VAC5-80-30. Licensing and approval to do business in the Commonwealth.
Article III
Qualification of Insurer to Issue Variable Life Insurance
The following requirements are applicable to all insurers either seeking authority to issue variable life insurance in this Commonwealth or having authority to issue variable life insurance in this Commonwealth.
An insurer shall not deliver or issue for delivery any variable life insurance policy in this Commonwealth unless:
1. The insurer is licensed to transact a life insurance business in this Commonwealth;
2. The insurer has obtained the necessary written approvals of the Commission for the conduct of a variable life insurance business in this Commonwealth. The Commission shall grant such written approval only after it has found that:
a. The plan of operation for the issuance of variable life insurance policies is not unsound;
b. The general character, reputation, and experience of the management and those persons or firms proposed to supply consulting, investment, administrative, or custodial services to the insurer are such as to reasonably assure competent operation of the variable life insurance business of the insurer in this Commonwealth; and
c. The present and foreseeable future financial condition of the insurer and its method of operation in connection with the issuance of such policies is not likely to render its operation hazardous to the public or its policyholders in this Commonwealth. The Commission shall consider, among other things:
(1) The history of operation and financial condition of the insurer.
(2) The qualifications, fitness, character, responsibility, reputation, and experience of the officers and directors and other management of the insurer and those persons or firms proposed to supply consulting, investment, administrative, or custodial services to the insurer;
(3) The applicable law and regulations under which the insurer is authorized in its state of domicile to issue variable life insurance policies. The state of entry of an alien insurer shall be deemed its state of domicile for this purpose; and
(4) If the insurer is a subsidiary of, or is affiliated by common management or ownership with another company, its relationship to such other company and the degree to which the requesting insurer, as well as the other company, meet these standards.
Statutory Authority
§§ 12.1-13 and 38.2-3313 of the Code of Virginia.
Historical Notes
Derived from Regulation 26, Case No. INS920077, Article IV, § 1, eff. June 15, 1992.
14VAC5-80-40. Filing for approval to do business in the Commonwealth.
The Commission may, at its discretion, require that an insurer, before it delivers or issues for delivery any variable life insurance policy in this Commonwealth, file the following information for the consideration of the Commission in making the determination required by subdivision 2 of 14VAC5-80-30 of this article:
1. Copies of and a general description of the variable life insurance policies it intends to issue; however, approval of the insurer pursuant to this Article shall not be construed as approval of the forms pursuant to Article IV of this chapter;
2. A general description of the methods of operation of the variable life insurance business of the insurer; including methods of distribution of policies and the names of those persons or firms proposed to supply consulting, investment, administrative, custodial or distribution services to the insurer;
3. With respect to any separate account maintained by an insurer for any variable life insurance policy, a statement of the investment policy the issuer intends to follow for the investment of the assets held in such separate account, and a statement of procedures for changing such investment policy. The statement of investment policy shall include a description of the investment objectives intended for the separate account;
4. A description of any investment advisory services contemplated as required by 14VAC5-80-290 of Article VI.
5. A copy of the statutes and regulations of the state of domicile of the insurer under which it is authorized to issue variable life insurance policies; and
6. Biographical data with respect to officers and directors of the insurer on the National Association of Insurance Commissioners Uniform Biographical Data Form; and
7. A statement of the insurer's actuary describing the mortality and expense risks which the insurer will bear under the policy.
Statutory Authority
§§ 12.1-13 and 38.2-3313 of the Code of Virginia.
Historical Notes
Derived from Regulation 26, Case No. INS920077, Article IV, § 2, eff. June 15, 1992.
14VAC5-80-50. Standards of suitability.
Every insurer seeking approval to enter into the variable life insurance business in this Commonwealth shall establish and maintain a written statement specifying the Standards of Suitability to be used by the insurer. Such Standards of Suitability shall specify that no recommendations shall be made to an applicant to purchase a variable life insurance policy and that no variable life insurance policy or certificate shall be issued in the absence of reasonable grounds to believe that the purchase of such policy or certificate is not unsuitable for such applicant on the basis of information furnished after reasonable inquiry of such applicant concerning the applicant's insurance and investment objectives, financial situation and needs, and any other information known to the insurer or to the agent making the recommendation.
Statutory Authority
§§ 12.1-13 and 38.2-3313 of the Code of Virginia.
Historical Notes
Derived from Regulation 26, Case No. INS920077, Article IV, § 3, eff. June 15, 1992.
14VAC5-80-60. Use of sales materials.
An insurer authorized to transact variable life insurance business in this Commonwealth shall not use any sales material, advertising material, or descriptive literature or other materials of any kind in connection with its variable life insurance business in this Commonwealth which is false, misleading, deceptive, or inaccurate.
Variable life insurance marketing communications shall be subject to the additional requirements of Rules Governing Advertisement of Life Insurance and Annuities (14VAC5-41-10).
Statutory Authority
§§ 12.1-13 and 38.2-223 of the Code of Virginia.
Historical Notes
Derived from Regulation 26, Case No. INS920077, Article IV, § 4, eff. June 15, 1992; amended, Virginia Register Volume 37, Issue 4, eff. October 12, 2020.
14VAC5-80-70. Requirements applicable to contractual services.
Any material contract between an insurer and suppliers of consulting, investment, administrative, sales, marketing, custodial, or other services with respect to variable life insurance operations shall be in writing and provide that the supplier of such services shall furnish the Commission with any information or reports in connection with such services which the Commission may request in order to ascertain whether the variable life insurance operations of the insurer are being conducted in a manner consistent with this chapter and any other applicable law or regulations.
Statutory Authority
§§ 12.1-13 and 38.2-3313 of the Code of Virginia.
Historical Notes
Derived from Regulation 26, Case No. INS920077, Article IV, § 5, eff. June 15, 1992.
14VAC5-80-80. Reports to the Commission.
Any insurer authorized to transact the business of variable life insurance in this Commonwealth shall submit to the Commission, in addition to any other materials which may be required by this chapter or any other applicable laws or regulations;
a. an annual statement of the business of its separate account or accounts in such form as may be prescribed by the Commission; and
b. prior to its use in this Commonwealth any information furnished to applicants as provided for in Article VII (14VAC5-80-300) and
c. prior to its use in this Commonwealth the form of any of the Reports to Policyholders as provided for in Article IX (14VAC5-80-320); and
d. such additional information concerning its variable life insurance operations or its separate accounts as the Commission shall deem necessary.
Any material submitted to the Commission under this section shall be disapproved if it is found to be false, misleading, deceptive, or inaccurate in any material respect and, if previously distributed, the Commission may require the distribution of amended material.
Statutory Authority
§§ 12.1-13 and 38.2-3313 of the Code of Virginia.
Historical Notes
Derived from Regulation 26, Case No. INS920077, Article IV, § 6, eff. June 15, 1992.
14VAC5-80-90. Authority of Commission to disapprove.
Any material required to be filed with and approved by the Commission shall be subject to disapproval or withdrawal of approval if at any time such material is found by the Commission not to comply with the standards established by this chapter, or any other applicable statute or regulation.
Statutory Authority
§§ 12.1-13 and 38.2-3313 of the Code of Virginia.
Historical Notes
Derived from Regulation 26, Case No. INS920077, Article IV, § 7, eff. June 15, 1992.