{"data":{"id":"us-va/14vac5-280-70-1","jurisdiction":"us-va","citation":"14VAC5-280-70:1","heading":"EXHIBIT 1. SIGNIFICANT RISKS TABLE","body":"EXHIBIT 1. SIGNIFICANT RISKS TABLE\n\nPRODUCT OR TYPE OF BUSINESS\n\nRISK CATEGORIES**\n\na\n\nb\n\nc\n\nd\n\ne\n\nf\n\nHealth Insurance--other than LTC/LTD*\n\n+\n\n0\n\n+\n\n0\n\n0\n\n0\n\nHealth Insurance--LTC/LTD*\n\n+\n\n0\n\n+\n\n+\n\n+\n\n0\n\nImmediate Annuities\n\n0\n\n+\n\n0\n\n+\n\n+\n\n0\n\nSingle Premium Deferred Annuities\n\n0\n\n0\n\n+\n\n+\n\n+\n\n+\n\nFlexible Premium Deferred Annuities\n\n0\n\n0\n\n+\n\n+\n\n+\n\n+\n\nGuaranteed Interest Contracts\n\n0\n\n0\n\n0\n\n+\n\n+\n\n+\n\nOther Annuity Deposit Business\n\n0\n\n0\n\n+\n\n+\n\n+\n\n+\n\nSingle Premium Whole Life\n\n0\n\n+\n\n+\n\n+\n\n+\n\n+\n\nTraditional Nonparticipating Permanent\n\n0\n\n+\n\n+\n\n+\n\n+\n\n+\n\nTraditional Nonparticipating Term\n\n0\n\n+\n\n+\n\n0\n\n0\n\n0\n\nTraditional Participating Permanent\n\n0\n\n+\n\n+\n\n+\n\n+\n\n+\n\nTraditional Participating Term\n\n0\n\n+\n\n+\n\n0\n\n0\n\n0\n\nAdjustable Premium Permanent\n\n0\n\n+\n\n+\n\n+\n\n+\n\n+\n\nIndeterminate Premium Permanent\n\n0\n\n+\n\n+\n\n+\n\n+\n\n+\n\nUniversal Life Flexible Premium\n\n0\n\n+\n\n+\n\n+\n\n+\n\n+\n\nUniversal Life Fixed Premium\n\n0\n\n+\n\n+\n\n+\n\n+\n\n+\n\nUniversal Life Fixed Premium (dump-in premiums allowed)\n\n0\n\n+\n\n+\n\n+\n\n+\n\n+\n\n+ = Significant; 0 = Insignificant\n\n*LTC = Long Term Care Insurance; LTD = Long Term Disability   Insurance\n\n**Risk Categories:\n\n(a) Morbidity.\n\n(b) Mortality.\n\n(c) Lapse. This is the risk that a policy will voluntarily terminate   prior to the recoupment of a statutory surplus strain experienced at issue of   the policy.\n\n(d) Credit Quality (C1). This is the risk that invested   assets supporting the reinsured business will decrease in value. The main   hazards are that assets will default or that there will be a decrease in   earning power. It excludes market value declines due to changes in interest   rates.\n\n(e) Reinvestment (C3). This is the risk that interest rates will   fall and funds reinvested (coupon payments or moneys received upon asset   maturity or call) will therefore earn less than expected. If asset durations   are less than liability durations, the mismatch will increase.\n\n(f) Disintermediation (C3). This is the risk that interest   rates rise and policy loans and surrenders increase or maturing contracts do   not renew at anticipated rates of renewal. If asset durations are greater   than the liability durations, the mismatch will increase. Policyholders will   move their funds into new products offering higher rates. The company may   have to sell assets at a loss to provide for these withdrawals.","path":["Title 14. Insurance","Agency 5. State Corporation Commission, Bureau of Insurance","Chapter 280. Rules Establishing Standards for Life, Annuity, and Accident and Sickness Reinsurance Agreements"],"source_url":"https://law.lis.virginia.gov/admincode/title14/agency5/chapter280/section70:1/","current_through":"2026 Regular Session (effective July 1, 2026)","vintage":"","retrieved_at":"2026-09-14T04:51:57Z","sha256":"75321b8e2c0b7ca18f6343eee989a78361e4a74fdf0d7140095f9279a4c43823","source_id":"us-va-vac","stale":false,"prev":"us-va/14vac5-280-70","next":"us-va/14vac5-280-70-2"},"notice":"GroundRules: Original legal text. Not legal advice."}