Adoption of Actuarial Guidelines by the Bureau of Insurance, issued August 14, 1979

JAMES W. NEWMAN, JR.

MMISSIONER OF INSURANCE

W. G. FLOURNOY

FIRST DEPUTY COMMISSIONER

BOX 1157

RICHMOND, VA. 23:

TELEPHONE (804) 786 .

STATE CORPORATION COMMISSION

BUREAU OF INSURANCE

August 14, 1979

Administrative

Letter_

1979-20

TO:

All Foreign Life Insurance Companies Licensed in

Virginia

FROM:

L. Gerald Roach L G R

Assistant Commissioner

Financial Condition Division

SUBJECT:

Adoption of Actuarial Guidelines by Bureau of Insurance

Senate Bill 801, which was enacted during the 1979 session of the

Virginia General Assembly, amended the standard valuation and non-

forfeiture benefit laws applicable to life insurers transacting

business in Virginia.

This Act became effective as of July 1, 1979

and is applicable to life insurance and annuity contracts issued by

all companies licensed in Virginia, both domestic and foreign.

Senate

Bill 801 was substantially the same as the 1976 model valuation and

- non-forfeiture law adopted by the National Association of Insurance

Commissioners at its December meeting in 1976.

In addition, effective June 30, 1978, the National Association of

Insurance Commissioners also adopted four actuarial guidelines which

were intended to establish uniform interpretations of several provisions

of the 19 7 6 model law.

The purpose of this letter, is to advise you

that the Bureau of Insurance has also adopted the National Association

of Insurance Commissioners’ Actuarial Guidelines effective as of July 1,

1979.

As written, these guidelines interprete the provisions of the

1976 model law; therefore, please be advised that any references there-

in to prior years should be related to the July 1, 1979 effective date

of our adoption of these guidelines. I am sure that you already have

access to copies of the National Association of Insurance Commissioners

Actuarial Guidelines; however, should you want to receive a copy from

our office please let us know

ions of the

1976 model law; therefore, please be advised that any references there-

in to prior years should be related to the July 1, 1979 effective date

of our adoption of these guidelines. I am sure that you already have

access to copies of the National Association of Insurance Commissioners

Actuarial Guidelines; however, should you want to receive a copy from

our office please let us know.

Actuarial Guideline I, Actuarial Guideline IV and Virginia Code Section

38.1-456(6) shall become operative with respect to policies and contracts

valued on the 19 58 CSO Mortality Table issued on or after July 1, 19 79 ,

unless a company elects to make them retroactively operative with respect

to such policies and contracts issued prior to July 1, 1979.

Actuarial Guideline II and Actuarial Guideline III shall become operative

with respect to all policies and contracts issued on or after July 1,

1979 .

If you have any questions regarding the above, please do not hesitate to

call me or Mr. John Jones, Life Actuary at (804) 786-3635.

LGR/dl

______