W. Va. Code R. § 114-102-1
Current through Register Vol. XLI, No. 50, December 13, 2024
Section 114-102-1 - General1.1. Scope. -- The purpose and intent of this rule is to establish uniform, national standards governing reserve financing arrangements pertaining to life insurance policies containing guaranteed nonlevel gross premiums, guaranteed nonlevel benefits and universal life insurance policies with secondary guarantees; and to ensure that, with respect to each such financing arrangement, funds consisting of primary security and other security are held by or on behalf of ceding insurers in the forms and amounts required herein. In general, reinsurance ceded for reserve financing purposes has one or more of the following characteristics: some or all of the assets used to secure the reinsurance treaty or to capitalize the reinsurer (1) are issued by the ceding insurer or its affiliates; (2) are not unconditionally available to satisfy the general account obligations of the ceding insurer; or (3) create a reimbursement, indemnification or other similar obligation on the part of the ceding insurer or any of its affiliates (other than a payment obligation under a derivative contract acquired in the normal course and used to support and hedge liabilities pertaining to the actual risks in the policies ceded pursuant to the reinsurance treaty). This rule shall apply to reinsurance treaties that cede liabilities pertaining to covered policies issued by any life insurance company domiciled in this state. This rule and 114CSR40 shall both apply to such reinsurance treaties. However, in the event of a direct conflict between the provisions of this rule and 114CSR40, the provisions of this rule shall apply, but only to the extent of the conflict. This rule is based upon the National Association of Insurance Commissioners' "Term and Universal Life Insurance Reserve Financing Model Regulation," Model 787, as amended in 2017.1.2. Authority. -- W. Va. Code §§ 33-2-10 and 33-4-15a(e).1.3. Filing Date. -- June 6, 2022.1.4. Effective Date. -- July 1, 2022.1.5. Sunset Provision. -- This rule shall terminate and have no further force or effect on August 1, 2027.W. Va. Code R. § 114-102-1