2006 Code of Virginia § 38.2-1031 - Additional requirements, alien insurers

38.2-1031. Additional requirements, alien insurers.

A. No alien insurer shall be licensed to transact the business of insurancein this Commonwealth unless it (i) has a "trusteed surplus," as defined insubsection B of this section, of at least four million dollars and (ii) hasfiled with the Commission a certificate from the supervising insuranceofficial of the state of entry certifying that it is authorized to write theclasses of insurance it proposes to write in this Commonwealth or it hasfiled with the Commission a certificate of the supervising insurance officialof its domiciliary country that it is authorized there to transact the kindof insurance business it proposes to transact in this Commonwealth.

B. "Trusteed surplus" of an alien insurer means the excess of the aggregatevalue of the assets set forth in subsection C of this section over theaggregate net amount of all of its liabilities in the United States.

C. 1. General state deposits are all of the alien insurer's assets within theUnited States on deposit with officers of any state for the benefit andsecurity of all of its policyholders and creditors in the United States.

2. Special state deposits are all of the alien insurer's assets in the UnitedStates, other than general state deposits, which are on deposit with officersof any state for the benefit and security of its policyholders and creditorsin the state of deposit, or for the benefit and security of certain classesof its policyholders and creditors either in the state of deposit or in theUnited States. The value of special state deposits shall in no event exceedthe value of the liability secured by the special state deposits.

3. Trusteed assets are all of its assets in the United States, other thangeneral state deposits and special state deposits, held by any trustee forthe benefit and security of all of its policyholders and creditors in theUnited States.

4. Interest receivable includes any interest collectable by the state ortrustee that is receivable, due and accrued on the general state deposits,the special state deposits, and the trusteed assets of the alien insurer.

D. An alien insurer's liabilities in the United States are all of thereserves and other liabilities incurred by the alien insurer in the UnitedStates, from which may be deducted:

1. An amount equal to the reinsurance credits allowed by Article 3.1 (38.2-1316.1 et seq.) of Chapter 13;

2. From the amount of such liabilities for unearned premiums, the unearnedportion of premiums receivable by an alien insurer from its agents orpolicyholders under policies issued by it in the United States and not morethan ninety days past due on the date of such statement;

3. Those liabilities in the United States pertaining to any asset in theUnited States of the alien insurer other than the assets described insubsection C of this section. This deduction shall be allowed only to theextent considered appropriate by the Commission and shall in no case exceedthat portion of the value of the asset that is applicable to the liabilitypertaining to the asset; and

4. The amount of the unpaid principal and interest of any loan made by thealien insurer to the holder of, and solely on the security of, any lifeinsurance policy or annuity contract issued or assumed by it on the life ofor to any person in the United States. This amount shall in no case exceedthe amount of the reserve it is required to maintain on the policy or annuitycontract.

(Code 1950, 38-38, 38-514; 1952, c. 317, 38.1-95; 1966, c. 580; 1977, c.322; 1978, c. 20; 1985, c. 243; 1986, c. 562; 1991, c. 261.)