(1)A domestic
life insurance company may establish one or more separate accounts and may
allocate thereto amounts, including without limitation proceeds applied under
optional modes of settlement or under dividend options, to provide for life
insurance or annuities and benefits incidental thereto, payable in fixed or variable
amounts or both and may accumulate or hold funds paid pursuant to funding
agreements or guaranteed investment contracts, subject to the following:
(a)The income, gains, and losses, realized or unrealized, from assets
allocated to a separate account shall be credited to or charged against the account,
without regard to other income, gains, or losses of the company.
(b)Except as may be provided with respect to reserves for guaranteed
benefits and funds ref
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(1) A domestic
life insurance company may establish one or more separate accounts and may
allocate thereto amounts, including without limitation proceeds applied under
optional modes of settlement or under dividend options, to provide for life
insurance or annuities and benefits incidental thereto, payable in fixed or variable
amounts or both and may accumulate or hold funds paid pursuant to funding
agreements or guaranteed investment contracts, subject to the following:
(a) The income, gains, and losses, realized or unrealized, from assets
allocated to a separate account shall be credited to or charged against the account,
without regard to other income, gains, or losses of the company.
(b) Except as may be provided with respect to reserves for guaranteed
benefits and funds referred to in paragraph (c) of this subsection (1), amounts
allocated to any separate account and accumulations thereon may be invested and
reinvested without regard to any requirements or limitations prescribed by the laws
of this state governing the investments of life insurance companies, and the
investments in such separate account shall not be taken into account in applying
the investment limitations otherwise applicable to the investments of the company.
(c) Except with the approval of the commissioner and under such conditions
as to investments and other matters as he may prescribe, which shall recognize the
guaranteed nature of the benefits provided, reserves for benefits guaranteed as to
dollar amount and duration and for funds guaranteed as to principal amount or
stated rate of interest shall not be maintained in a separate account.
(d) Unless otherwise approved by the commissioner, assets allocated to a
separate account shall be valued at their market value on the date of valuation or, if
there is no readily available market, as provided under the terms of the contract or
the rules or other written agreement applicable to such separate account; except
that, unless otherwise approved by the commissioner, that portion, if any, of the
assets of such separate account equal to the company's reserve liability as
provided in paragraph (c) of this subsection (1) shall be valued in accordance with
the rules otherwise applicable to the company's assets.
(e) Amounts allocated to a separate account in the exercise of the power
granted by this section shall be owned by the company, and the company shall not
be, nor hold itself out to be, a trustee with respect to such amounts. To the extent
provided under the applicable contracts, that portion of the assets of any such
separate account which is equal to the reserves and other contract liabilities with
respect to such account shall not be chargeable with liabilities arising out of any
other business the company may conduct.
(f) No sale, exchange, or other transfer of assets may be made by a company
between any of its separate accounts or between any other investment account and
one or more of its separate accounts unless, in case of a transfer into a separate
account, such transfer is made solely to establish the account or to support the
operation of the contracts with respect to the separate account to which the
transfer is made, and unless such transfer, whether into or from a separate account,
is made by a transfer of cash or by a transfer of securities having a readily
determinable market value, if such transfer of securities is approved by the
commissioner. The commissioner may approve other transfers among such
accounts if, in his opinion, such transfers would not be inequitable.
(g) To the extent such company deems it necessary to comply with any
applicable federal or state laws, such company, with respect to any separate
account, including without limitation any separate account which is a management
investment company or a unit investment trust, may provide for persons having an
interest therein appropriate voting and other rights and special procedures for the
conduct of the business of such account, including without limitation special rights
and procedures relating to investment policy, investment advisory services,
selection of independent public accountants, and the selection of a committee, the
members of which need not be otherwise affiliated with such company, to manage
the business of such account.