CODE OF VIRGINIA

ADDITIONAL REQUIREMENTS, ALIEN INSURERS (§ 38.2-1031)

A. No alien insurer shall be licensed to transact the business of insurance in
this Commonwealth unless it (i) has a “trusteed surplus,” as defined
in subsection B of this section, of at least four million dollars and (ii) has
filed with the Commission a certificate from the supervising insurance official
of the state of entry certifying that it is authorized to write the classes of
insurance it proposes to write in this Commonwealth or it has filed with the
Commission a certificate of the supervising insurance official of its
domiciliary country that it is authorized there to transact the kind of
insurance business it proposes to transact in this Commonwealth.

B. of an alien insurer means the excess of the aggregate value of the assets set
forth in subsection C of this section over the aggregate 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
   the United States on deposit with officers of any state for the benefit and
   security 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
   United States, other than general state deposits, which are on deposit with
   officers of any state for the benefit and security of its policyholders and
   creditors in the state of deposit, or for the benefit and security of certain
   classes of its policyholders and creditors either in the state of deposit or
   in the United States. The value of special state deposits shall in no event
   exceed the value of the liability secured by the special state deposits.

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

   4.  Interest receivable includes any interest collectable by the state or
   trustee 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 the
reserves and other liabilities incurred by the alien insurer in the United
States, 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 unearned
   portion of premiums receivable by an alien insurer from its agents or
   policyholders under policies issued by it in the United States and not more
   than ninety days past due on the date of such statement;

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

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

HISTORY: 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.