38.2-1401 - Definitions.
§ 38.2-1401. Definitions.
As used in this chapter:
"Admitted assets" means, for purposes of the limitations and standardsimposed by Articles 1 and 2 of this chapter, the amount thereof as permittedto be reported on the statutory financial statement of the insurer mostrecently required to be filed with the Commission pursuant to §§ 38.2-1300and 38.2-1301 or other similar provisions within this title, but excludingthe assets allocated to separate accounts pursuant to Article 3 (§ 38.2-1443et seq.) of this chapter.
"Business entity" means a corporation, association, partnership, jointventure, trust, church, or religious body.
"Category 1 investment" means any investment complying with Article 1 (§38.2-1400 et seq.) and either Article 2 (§ 38.2-1412 et seq.) or 3 (§38.2-1443 et seq.), or both Articles 2 and 3, of this chapter.
"Category 2 investment" means any investment complying with Article 1, butwith neither Article 2 nor Article 3, of this chapter.
"Claimants" means any owners, beneficiaries, assignees, certificateholders, or third-party beneficiaries of any insurance benefit or rightarising out of and within the coverage of an insurance policy, annuitycontract, benefit contract, or subscription contract.
"Date of investment" means the date on which funds are disbursed for aninvestment.
"Domestic governmental entity" means the United States, any state, or anymunicipality or district in any such state, or any political subdivision,civil division, agency or instrumentality of one or more of the foregoing.
"Fair market value" means the price that property will bring when (i)offered for sale by one who desires, but who is not obligated, to sell it;(ii) bought by one who is under no necessity of having it; and (iii)sufficient time has elapsed to allow interested buyers the opportunity tobecome informed of the offer for sale.
"Fixed charges" means actual interest incurred in each year on funded andunfunded debt, excluding interest on bank deposit accounts, and annualapportionment of debt discount or premium. Where interest is partially orentirely contingent upon earnings, "fixed charges" includes contingentinterest payments.
"High grade obligations" means obligations which (i) are rated one or twoby the Securities Valuation Office of the National Association of InsuranceCommissioners or (ii) if not rated by the Securities Valuation Office, arerated in an equivalent grade by a national rating agency recognized by theCommission.
"Insurer" means a company licensed pursuant to Chapter 10 (§ 38.2-1000 etseq.), 11 (§ 38.2-1100 et seq.), 12 (§ 38.2-1200 et seq.), 25 (§ 38.2-2500 etseq.), 26 (§ 38.2-2600 et seq.), 38 (§ 38.2-3800 et seq.), 39 (§ 38.2-3900 etseq.), 40 (§ 38.2-4000 et seq.), 41 (§ 38.2-4100 et seq.), 42 (§ 38.2-4200 etseq.), 43 (§ 38.2-4300 et seq.), 45 (§ 38.2-4500 et seq.), 46 (§ 38.2-4600 etseq.), 51 (§ 38.2-5100 et seq.), or 61 (§ 38.2-6100 et seq.) of this title.
"Life insurer" means any insurer authorized to transact life insurance orto grant annuities as defined in §§ 38.2-102 through 38.2-107 or authorizedpursuant to the provisions of Chapter 38, 39, 40 or 41, or any other chapterof this title, to provide any one of the following contractual benefits inany form: death benefits, endowment benefits, annuity benefits or monument ortombstone benefits.
"Lower grade obligations" means obligations which (i) are rated four, five,or six by the Securities Valuation Office of the National Association ofInsurance Commissioners or (ii) if not rated by the Securities ValuationOffice, are rated in an equivalent grade by a national rating agencyrecognized by the Commission.
"Medium grade obligations" means obligations which (i) are rated three bythe Securities Valuation Office of the National Association of InsuranceCommissioners or (ii) if not rated by the Securities Valuation office, arerated in an equivalent grade by a national rating agency recognized by theCommission.
"Minimum capital and surplus" means the minimum surplus to policyholders,or minimum net worth, a particular insurer must have to obtain and maintainits license to transact business in this Commonwealth pursuant to theapplicable provisions of this title. In no case shall an insurer's minimumcapital and surplus be less than zero.
"Net earnings available for fixed charges" means income minus operatingexpenses, maintenance expenses, taxes other than income taxes, depreciation,and depletion. Extraordinary nonrecurring income and expense items areexcluded from the calculation of "net earnings available for fixed charges."
"Obligation" means a bond, debenture, note or other evidence ofindebtedness.
"Prohibited investment" means any investment prohibited by § 38.2-1407.
"Reserve liabilities" means those liabilities which are required to beestablished by an insurer for all of its outstanding insurance policies,annuity contracts, benefit contracts and subscription contracts, inaccordance with this title, as amended or as hereafter amended.
"Wrap-around mortgage" means a loan made by an insurer to a borrower,secured by a mortgage or deed of trust on real property encumbered by a firstmortgage or first deed of trust, where the total amount of the obligation ofthe borrower to the insurer under the loan is not less than the sum of (i)the principal amount initially disbursed by the insurer on account of theloan and (ii) the unpaid principal balance of the obligation secured by thepreexisting mortgage or deed of trust.
(1983, c. 457, § 38.1-217.2; 1986, c. 562; 1992, c. 588; 1994, c. 503; 1998,c. 42; 2004, c. 668; 2008, c. 216.)