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OFFICE OF THE LIEUTENANT GOVERNOR, DMSION OF BANKING, INSURANCE AND FINANCIAL REGULATION Rules and Regulations for Tenn and Universal Life Insurance Reserve Financing Submitted this __ Day of ___ _.. 20 to LIEUTENANT GOVERNOR TREGENZA A. ROACH, ESQ. by regenza A. R ach, q. L.·e en Governor/Commissioner of Insurance Office of the Lieutenant Governor Division of Banking, Insurance and Financial Regulation The copy below is hereby certified to be a true and correct copy of Regulations adopted pursuant to authority granted in Title 22 V.I.C., Chapter SSA, Section 1446, and Title 22 V.I.C., Chapter 3, Section 53. The Regulations are part of Chapter SSA of Title 22 of the Virgin Islands Rules and Regulations. 3rd August 22 Table of Contents CPE R Ooo KH eA HHH HEE POH TET ETERS EET O AOE EHREHE HOHE OBO OE Statement of Statutory Authority Effective Date SOROS MHRA HEH HEHEHE TE SORT OT EHE HEHEHE HEEEHEHH HEHEHE DEOH ESE E DEERE E HORE 1446-3. Short Title POC THOT OH THERES HOHE RARER O SHEE HHH HET HOHE TET OT OSC HE DE SCERO REE HEHEHE OES OSES 1446-4. Purpose and Intent CORPS OHTA A HHH HHO ETTORE RDO ER EC HABE EE RHR AHEEH HE RTO TROD ERO OEE 1446-5. Applicability SHEE THOR ETT ETH TOS DED OH HR HEHE RE HEHEHE EHH THOT ETOH ROCHE EEEE HEE EHE HHO DASE 1446-6. Definitions PTET OTC H THRESH TORO EH AAEHREHRHETH ETH ETE HERE ORES OTE E RASH HEHE HEH OKOKER TOES 1446-7. Exemptions from these Regulations SO eere esac eee nant easaeseseeteeenoeeseeoeEaor 1446-8. The Actuarial Method PORCH REAR AEH ETH HOHE EO SHH DRS OHO DERE RARER E AHHH TE OPO RESO LO ORE 1446-9. Requirements Applicable to Covered Policies to Obtain Credit for oe ee eee eee eee eee ee eee eee eee ee eee 13 Reinsurance; Opportunity for Remediation 1446-10. Severability PTO OH TOT TOOT ORO HOR ALOE H EEE H HEHE RET HOES OTT ES HOCH HE HREE AHHH ERED OPES ONE 16 1446-11. Prohibition Against Avoidance PR ee Rene eet as eee Hames Ee HOHE Ce ESO eo eR OER HEE O READE 16 CERTIFICATION BY THE LIEUTENANT GOVERNOR THAT REGULATIONS WERE DULY PUBLISHED AND CONFORM TO FORMATTING REQUIREMENTSB.......... 17 GOVERNOR’S APPROVAL & LIEUTENANT GOVERNOR’S ATTEST 18 GOVERNOR’S CERTIFICATE OF COMPELLING CIRCUMSTANCES 19 CERTIFICATION OF TRANSMITTAL TO LEGISLATURE........... 20 Rules and Regulations for Term and Universal Life Insurance Reserve Financing Statement of Statutory Authority These regulations are promulgated pursuant to the authority granted by Sections 53 and 1446 of Title 22 of the Virgin Islands Code. Effective Date As the following Rules and Regulations for Term and Universal Life Insurance Reserve Financing are issued pursuant to a Certificate of Compelling Circumstances, they are effective immediately upon signature of the Governor and attest by the Lieutenant Governor. SECTION 1446-3. Short Title Sections 1446-3 through 1446-11 shall be known and may be cited as the “Rules and Regulations for Term and Universal Life Insurance Reserve Financing” (hereinafter referred to as the “Rules and Regulations”). SECTION 1446-4. Purpose and Intent The purpose and intent of these regulations are 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, as defined in Section 1446-6, 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; or (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 if 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). Rules and Regulations for Term and Universal Life Insurance Reserve Financing Page 3 Section 1446-5. Applicability These regulations shall apply to reinsurance treaties that cede liabilities pertaining to Covered Policies, as that term is defined in Section 1446-6(b), issued by any life insurance company domiciled in this Territory. These regulations and the Rules and Regulations for the Virgin Islands Credit for Reinsurance Act shall both apply to such reinsurance treaties; provided, that in the event of a direct conflict between the provisions of these regulations and the Rules and Regulations for the Virgin Islands Credit for Reinsurance Act, the provisions of these regulations shall apply, but only to the extent of the conflict. SECTION 1446-6. Definitions (a) ‘Actuarial Method” means the methodology used to determine the Required Level of Primary Security, as described in Section 1446-8. (b)“Covered Policies” means the following: Subject to the exemptions described in Section 1446-7, Covered Policies are those policies, other than Grandfathered Policies, of the following policy types: (1) Life insurance policies with guaranteed nonlevel gross premiums and/or guaranteed nonlevel benefits, except for flexible premium universal life insurance policies; or, (2) Flexible premium universal life insurance policies with provisions resulting in the ability of a policyholder to keep a policy in force over a secondary guarantee period. (c)“Grandfathered Policies” means policies of the types described in Subsections (b)(1) and (b)(2) above that were: (1) Issued prior to January 1, 2015; and (2) Ceded, as of December 31, 2014, as part of a reinsurance treaty that would not have met one of the exemptions set forth in Section 1446-7 had that section then been in effect. (d) “Non-Covered Policies” means any policy that does not meet the definition of Covered Policies, including Grandfathered Policies. Rules and Regulations for Term and Universal Life Insurance Reserve Financing Page 4 (e) “Required Level of Primary Security” means the dollar amount determined by applying the Actuarial Method to the risks ceded with respect to Covered Policies, but not more than the total reserve ceded. (f) “Primary Security” means the following forms of security: (1) Cash meeting the requirements of Section 1444(a) of Title 22 of the Virgin Islands Code; (2) Securities listed by the Securities Valuation Office meeting the requirements of Section 1444(b) of Title 22 of the Virgin Islands Code, but excluding any synthetic letter of credit, contingent note, credit-linked note or other similar security that operates in a manner similar to a letter of credit, and excluding any securities issued by the ceding insurer or any of its affiliates; and (3) For security held in connection with funds-withheld and modified coinsurance reinsurance treaties: (A) Commercial loans in good standing of CM3 quality and higher; (B) Policy Loans; and (C) Derivatives 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. (g) “Other Security” means any security acceptable to the Commissioner other than security meeting the definition of Primary Security. (h) “Valuation Manual” means the valuation manual adopted by the NAIC as described in Section 546 of Title 22 of the Virgin Islands Code, with all amendments adopted by the NAIC that are effective for the financial statement date on which credit for reinsurance is claimed. (i) “VM-20” means “Requirements for Principle-Based Reserves for Life Products,” including all relevant definitions, from the Valuation Manual. Rules and Regulations for Term and Universal Life Insurance Reserve Financing Page 5 SECTION 1446-7. Exemptions from these Regulations These regulations do not apply to the situations described in Subsections (a) through (f). (a) Reinsurance of: (1) (2) (3) Policies that satisfy the criteria for exemption set forth in Section 6F of the NAIC Valuation of Life Insurance Policies Model Regulation or Section 6G of the NAIC Valuation of Life Insurance Policies Model Regulation; and which are issued before the later of: (A) September 1, 2022, and (B) The date on which the ceding insurer begins to apply the provisions of VM-20 to establish the ceded policies’ statutory reserves, but in no event later than Jan 1, 2020; Portions of policies that satisfy the criteria for exemption set forth in Section 6E of the NAIC Valuation of Life Insurance Policies Model Regulation and which are issued before the later of: (A) September 1, 2022, and (B) The date on which the ceding insurer begins to apply the provisions of VM-20 to establish the ceded policies’ statutory reserves, but in no event later than Jan. 1, 2020; Any universal life policy that meets all of the following requirements: (A)Secondary guarantee period, if any, is five (5) years or less; (B)Specified premium for the secondary guarantee period is not less than the net level reserve premium for the secondary guarantee period based on the Commissioners Standard Ordinary (CSO) valuation tables and valuation interest rate applicable to the issue year of the policy; and Rules and Regulations for Term and Universal Life Insurance Reserve Financing Page 6 (C) The initial surrender charge is not less than one hundred percent (100%) of the first year annualized specified premium for the secondary guarantee period; (4) Credit life insurance; (5) Any variable life insurance policy that provides for life insurance, the amount or duration of which varies according to the investment experience of any separate account or accounts; or (6) Any group life insurance certificate unless the certificate provides for a stated or implied schedule of maximum gross premiums required in order to continue coverage in force for a period in excess of one year. (b)Reinsurance ceded to an assuming insurer that meets the applicable requirements of Section 1443(f) of Title 22 of the Virgin Islands Code; or (c)Reinsurance ceded to an assuming insurer that meets the applicable requirements of Sections 1443(c), 1443(d) or 1443(e) of Title 22 of the Virgin Islands Code, and that, in addition: (1) Prepares statutory financial statements in compliance with the NAIC Accounting Practices and Procedures Manual, without any departures from NAIC statutory accounting practices and procedures pertaining to the admissibility or valuation of assets or liabilities that increase the assuming insurer’s reported surplus and are material enough that they need to be disclosed in the financial statement of the assuming insurer pursuant to Statement of Statutory Accounting Principles No. 1 (““SSAP 1”); and (2) Is not in a Company Action Level Event, Regulatory Action Level Event, Authorized Control Level Event, or Mandatory Control Level Event as those terms are defined in Chapter 20 of Title 22 of the Virgin Islands Code when its RBC is calculated in accordance with the life risk-based capital report including overview and instructions for companies, as the same may be amended by the NAIC from time to time, without deviation; or Rules and Regulations for Term and Universal Life Insurance Reserve Financing Page 7 (d)Reinsurance ceded to an assuming insurer that meets the applicable requirements of Sections 1443(c), 1443(d) or 1443(e) of Title 22 of the Virgin Islands Code and that, in addition: (1) Is not an affiliate, as that term is defined in Section 321(a) of Title 22 of the Virgin Islands Code, of: (A) The insurer ceding the business to the assuming insurer; or (B) Any insurer that directly or indirectly ceded the business to that ceding insurer; (2) Prepares statutory financial statements in compliance with the NAIC Accounting Practices and Procedures Manual; (3) Is both: (A) Licensed or accredited in at least 10 states (including its state of domicile), and (B) Not licensed in any state as a captive, special purpose vehicle, special purpose financial captive, special purpose life reinsurance company, limited purpose subsidiary, or any other similar licensing regime; and (4) Is not, or would not be, below 500% of the Authorized Control Level RBC as that term is defined in Chapter 20 of Title 22 of the Virgin Islands Code when its Risk-Based Capital (RBC) is calculated in accordance with the life risk-based capital report including overview and instructions for companies, as the same may be amended by the NAIC from time to time, without deviation, and without recognition of any departures from NAIC statutory accounting practices and procedures pertaining to the admission or valuation of assets or liabilities that increase the assuming insurer’s reported surplus; or (e) Reinsurance ceded to an assuming insurer that meets the requirements of Section 1446(e)(1), (2) or (3) of Title 22 of the Virgin Islands Code; or Rules and Regulations for Term and Universal Life Insurance Reserve Financing Page 8 (f) Reinsurance not otherwise exempt under Subsections (a) through (e) if the Commissioner, after consulting with the NAIC Financial Analysis Working Group (FAWG) or other group of regulators designated by the NAIC, as applicable, determines under all the facts and circumstances that all of the following apply: (1) (2) (3) The risks are clearly outside of the intent and purpose of this regulation (as described in Section 1446-4 above); The risks are included within the scope of this regulation only as a technicality; and The application of this regulation to those risks is not necessary to provide appropriate protection to policyholders. The Commissioner shall publicly disclose any decision made pursuant to this subsection to exempt a reinsurance treaty from this regulation, as well as the general basis therefor (including a summary description of the treaty). Section 1446-8. The Actuarial Method (a) Actuarial Method The Actuarial Method to establish the Required Level of Primary Security for each reinsurance treaty subject to this regulation shall be VM-20, applied on a treaty-by-treaty basis, including all relevant definitions, from the Valuation Manual as then in effect, applied as follows: (1) For Covered Policies described in Section 1446-6(b)(1), the Actuarial Method is the greater of the Deterministic Reserve or the Net Premium Reserve (NPR) regardless of whether the criteria for exemption testing can be met. However, if the Covered Policies do not meet the requirements of the Stochastic Reserve exclusion test in the Valuation Manual, then the Actuarial Method is the greatest of the Deterministic Reserve, the Stochastic Reserve, or the NPR. In addition, if such Covered Policies are reinsured in a reinsurance treaty that also contains Covered Policies described in Section 1446-6(b)(2), the ceding insurer may elect to instead use paragraph 2 of this subsection as Rules and Regulations for Term and Universal Life Insurance Reserve Financing Page 9 the Actuarial Method for the entire reinsurance agreement. Whether Paragraph 1 or 2 are used, the Actuarial Method must comply with any requirements or restrictions that the Valuation Manual imposes when aggregating these policy types for purposes of principle-based reserve calculations. (2) For Covered Policies described in Section 1446-6(b)(2), the Actuarial Method is the greatest of the Deterministic Reserve, the Stochastic Reserve, or the NPR regardless of whether the criteria for exemption testing can be met. (3) Except as provided in Paragraph (4) of this subsection, the Actuarial Method is to be applied on a gross basis to all risks with respect to the Covered Policies as originally issued or assumed by the ceding insurer. (4) If the reinsurance treaty cedes less than one hundred percent (100%) of the risk with respect to the Covered Policies then the Required Level of Primary Security may be reduced as follows: (A) Ifareinsurance treaty cedes only a quota share of some or all of the risks pertaining to the Covered Policies, the Required Level of Primary Security, as well as any adjustment under Subparagraph (C) below, may be reduced to a pro rata portion in accordance with the percentage of the risk ceded; (B) If the reinsurance treaty in a non-exempt arrangement cedes only the risks pertaining to a secondary guarantee, the Required Level of Primary Security may be reduced by an amount determined by applying the Actuarial Method on a gross basis to all risks, other than risks related to the secondary guarantee, pertaining to the Covered Policies, except that for Covered Policies for which the ceding insurer did not elect to apply the provisions of VM- 20 to establish statutory reserves, the Required Level of Primary Security may be reduced by the statutory reserve retained by the ceding insurer on those Covered Policies, where the retained reserve of those Covered Policies should be reflective of any reduction pursuant to the Rules and Regulations for Term and Universal Life Insurance Reserve Financing Page 10 cession of mortality risk on a yearly renewable term basis in an exempt arrangement; (C) Ifa portion of the Covered Policy risk is ceded to another reinsurer on a yearly renewable term basis in an exempt arrangement, the Required Level of Primary Security may be reduced by the amount resulting by applying the Actuarial Method including the reinsurance section of VM-20 to the portion of the Covered Policy risks ceded in the exempt arrangement, except that for Covered Policies issued prior to Jan 1, 2017, this adjustment is not to exceed [c,/ (2 * number of reinsurance premiums per year)} where Cx is calculated using the same mortality table used in calculating the Net Premium Reserve; and (D) For any other treaty ceding a portion of risk to a different reinsurer, including but not limited to stop loss, excess of loss and other non-proportional reinsurance treaties, there will be no reduction in the Required Level of Primary Security. It is possible for any combination of Subparagraphs (A), (B), (C), and (D) above to apply. Such adjustments to the Required Level of Primary Security will be done in the sequence that accurately reflects the portion of the risk ceded via the treaty. The ceding insurer should document the rationale and steps taken to accomplish the adjustments to the Required Level of Primary Security due to the cession of less than one hundred percent (100%) of the risk. The Adjustments for other reinsurance will be made only with respect to reinsurance treaties entered into directly by the ceding insurer. The ceding insurer will make no adjustment as a result of a retrocession treaty entered into by the assuming insurers. (5) Inno event will the Required Level of Primary Security resulting from application of the Actuarial Method exceed the amount of statutory reserves ceded. Rules and Regulations for Term and Universal Life Insurance Reserve Financing Page 11 (6) Ifthe ceding insurer cedes risks with respect to Covered Policies, including any riders, in more than one reinsurance treaty subject to this regulation, in no event will the aggregate Required Level of Primary Security for those reinsurance treaties be less than the Required Level of Primary Security calculated using the Actuarial Method as if all risks ceded in those treaties were ceded in a single treaty subject to this regulation; (7) Ifareinsurance treaty subject to this regulation cedes risk on both Covered and Non-Covered Policies, credit for the ceded reserves shall be determined as follows: (A) The Actuarial Method shall be used to determine the Required Level of Primary Security for the Covered Policies, and Section 1446-9 shall be used to determine the reinsurance credit for the Covered Policy reserves; and (B) Credit for the Non-Covered Policy reserves shall be granted only to the extent that security, in addition to the security held to satisfy the requirements of Subparagraph (A), is held by or on behalf of the ceding insurer in accordance with Sections 1443 and 1444 of Title 22 of the Virgin Islands Code. Any Primary Security used to meet the requirements of this Subparagraph may not be used to satisfy the Required Level of Primary Security for the Covered Policies. (b) Valuation used for Purposes of Calculations For the purposes of both calculating the Required Level of Primary Security pursuant to the Actuarial Method and determining the amount of Primary Security and Other Security, as applicable, held by or on behalf of the ceding insurer, the following shall apply: (1)For assets, including any such assets held in trust, that would be admitted under the NAIC Accounting Practices and Procedures Manual if they were held by the ceding insurer, the valuations are to be determined according to statutory accounting procedures as if such assets were held in the ceding insurer’s general account and Rules and Regulations for Term and Universal Life Insurance Reserve Financing Page 12 without taking into consideration the effect of any prescribed or permitted practices; and (2) For all other assets, the valuations are to be those that were assigned to the assets for the purpose of determining the amount of reserve credit taken. In addition, the asset spread tables and asset default cost tables required by VM-20 shall be included in the Actuarial Method if adopted by the NAIC’s Life Actuarial (A) Task Force no later than the Dec. 31* on or immediately preceding the valuation date for which the Required Level of Primary Security is being calculated. The tables of asset spreads and asset default costs shall be incorporated into the Actuarial Method in the manner specified in VM-20. Section 1446-9. Requirements Applicable to Covered Policies to Obtain Credit for Reinsurance; Opportunity for Remediation (a) Requirements Subject to the exemptions described in Section 1446-7 and the provisions of Subsection (b), credit for reinsurance shall be allowed with respect to ceded liabilities pertaining to Covered Policies pursuant to Sections 1443 or 1444 of Title 22 of the Virgin Islands Code if, and only if, in addition to all other requirements imposed by law or regulation, the following requirements are met on a treaty-by-treaty basis: (1) The ceding insurer’s statutory policy reserves with respect to the Covered Policies are established in full and in accordance with the applicable requirements of Subchapter II, in Chapter 21, of Title 22 of the Virgin Islands Code, and any related regulations and actuarial guidelines, and credit claimed for any reinsurance treaty subject to this regulation does not exceed the proportionate share of those reserves ceded under the contract; and (2) The ceding insurer determines the Required Level of Primary Security with respect to each reinsurance treaty subject to this regulation and provides support for its calculation as determined to be acceptable to the Commissioner; and Rules and Regulations for Term and Universal Life Insurance Reserve Financing Page 13 (3) (4) (5) Funds consisting of Primary Security, in an amount at least equal to the Required Level of Primary Security, are held by or on behalf of the ceding insurer, as security under the reinsurance treaty within the meaning of Section 1444 of Title 22 of the Virgin Islands Code, on a funds withheld, trust, or modified coinsurance basis; and Funds consisting of Other Security, in an amount at least equal to any portion of the statutory reserves as to which Primary Security is not held pursuant to Paragraph (3) above, are held by or on behalf of the ceding insurer as security under the reinsurance treaty within the meaning of Section 1444 of Title 22 of the Virgin Islands Code; and Any trust used to satisfy the requirements of this section shall comply with all of the conditions and qualifications of Section 1444-2 of the Rules and Regulations for the Virgin Islands Credit for Reinsurance Act, except that: (A) Funds consisting of Primary Security or Other Security held in trust, shall for the purposes identified in Section 1446-8(b), be valued according to the valuation rules set forth in Section 1446-8(b), as applicable; and (B) There are no affiliate investment limitations with respect to any security held in such trust if such security is not needed to satisfy the requirements of Subsection (a)(3); and (C) The reinsurance treaty must prohibit withdrawals or substitutions of trust assets that would leave the fair market value of the Primary Security within the trust (when aggregated with Primary Security outside the trust that is held by or on behalf of the ceding insurer in the manner required by Subsection (a)(3)) below 102% of the level required by Subsection (a)(3) at the time of the withdrawal or substitution; and (D) The determination of reserve credit under Section 1444- 2(e) of the Rules and Regulations for the Virgin Islands Rules and Regulations for Term and Universal Life Insurance Reserve Financing Page 14 Credit for Reinsurance Act shall be determined according to the valuation rules set forth in Section 1446-8(b), as applicable; and (6) The reinsurance treaty has been approved by the Commissioner. (b) Requirements at Inception Date and on an On-going Basis; Remediation (1) The requirements of Subsection (a) must be satisfied as of the date that risks under Covered Policies are ceded (if such date is on or after September 1, 2022) and on an ongoing basis thereafter. Under no circumstances shall a ceding insurer take or consent to any action or series of actions that would result in a deficiency under Subsection (a)(3) or (a)(4) with respect to any reinsurance treaty under which Covered Policies have been ceded, and in the event that a ceding insurer becomes aware at any time that such a deficiency exists, it shall use its best efforts to arrange for the deficiency to be eliminated as expeditiously as possible. (2) _ Prior to the due date of each Quarterly or Annual Statement, each life insurance company that has ceded reinsurance within the scope of Section 1446-5 shall perform an analysis, on a treaty- by-treaty basis, to determine, as to each reinsurance treaty under which Covered Policies have been ceded, whether as of the end of the immediately preceding calendar quarter (the valuation date) the requirements of Subsections (a)(3) and (a)(4) were satisfied. The ceding insurer shall establish a liability equal to the excess of the credit for reinsurance taken over the amount of Primary Security actually held pursuant to Subsection (a)(3), unless either: (A) The requirements of Subsections (a)(3) and (a)(4) were fully satisfied as of the valuation date as to such reinsurance treaty; or (B) Any deficiency has been eliminated before the due date of the Quarterly or Annual Statement to which the valuation date relates through the addition of Primary Security and/or Other Security, as the case may be, in such amount Rules and Regulations for Term and Universal Life Insurance Reserve Financing Page 15 and in such form as would have caused the requirements of Subsections (a)(3) and (a)(4) to be fully satisfied as of the valuation date. (3) Nothing in Subsection (b)(2) shall be construed to allow a ceding company to maintain any deficiency under Subsection (a)(3) or (a)(4) for any period of time longer than is reasonably necessary to eliminate it. Section 1446-10. Severability If any provision in these regulations is held invalid, the remainder shall not be affected. Section 1446-11. Prohibition against Avoidance No insurer that has Covered Policies as to which these regulations apply (as set forth in Section 1446-5) shall take any action or series of actions, or enter into any transaction or arrangement or series of transactions or arrangements if the purpose of such action, transaction or arrangement or series thereof is to avoid the requirements of these regulations, or to circumvent its purpose and intent, as set forth in Section 1446-4. Rules and Regulations for Term and Universal Life Insurance Reserve Financing Page 16 CERTIFICATION BY THE LIEUTENANT GOVERNOR THAT REGULATIONS WERE DULY PUBLISHED AND CONFORM TO FORMATTING REQUIREMENTS In my capacity as Lieutenant Governor of the United States Virgin Islands, I have reviewed the foregoing Rules and Regulations from the Office of the Lieutenant Governor, Division of Banking, Insurance and Financial Regulation, and find them to be in compliance with Title 3, Chapter 25, and hereby approve the same in accordance with 3 V.LC. § 936. _- Ve A. Krt- 8/21/2022 Lieutenant Governor or Designee Date United States Virgin Islands Rules and Regulations for Term and Universal Life Insurance Reserve Financing Page 17 GOVERNOR’S APPROVAL & LIEUTENANT GOVERNOR’S ATTEST Pursuant to the powers vested in me by Section 11 of the Revised Organic Act of 1954, the above Rules and Regulations for Term and Universal Life Insurance Reserve Financing of the Office of the Lieutenant Governor, Division of Banking, Insurance and Financial Regulation, will be published in a newspaper of general circulation for public comment for at least thirty (30) days after the date of approval noted below. 2s fz: a ae Date Governor United States Virgin Islands 8/21/2022 LO) TREGENZA A. ROACH, ESQ. Date Lieutenant Governor United States Virgin Islands Rules and Regulations for Term and Universal Life Insurance Reserve Financing GOVERNOR’S CERTIFICATE OF COMPELLING CIRCUMSTANCES Pursuant to the authority granted under Section 938 of Title 3 of the Virgin Islands Code, in my capacity as Governor of the United States Virgin Islands, I certify that because of compelling circumstances, including lengthy delays before publication, the public interest requires that the attached Rules and Regulations for Term and Universal Life Insurance Reserve Financing become effective immediately on the date noted below. aa Saf ALBERT BRYAN, JR. Date Governor United States Virgin Islands Rules and Regulations for Term and Universal Life Insurance Reserve Financing Page 19 CERTIFICATION OF TRANSMITTAL TO LEGISLATURE I hereby certify that the above-approved Rules and Regulations from the Office of the Lieutenant Governor, Division of Banking, Insurance and Financial Regulation, were transmitted to the Legislature of the Virgin Islands pursuant to 3 V. LC. § 913 on the day noted below. 7[erf & Governor or Designee Date Rules and Regulations for Term and Universal Life Insurance Reserve Financing