Adomesticlifeinsurancecompanyorganizedunderchapter508mayestablishoneormore
separate accounts, and may allocate to such accounts 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 to such life insurance or annuities,
payable in fixed or variable amounts or both, and may hold and accumulate funds pursuant
to funding agreements, subject to the following:
1.Theincome, gainsandlosses, realizedorunrealized, fromassetsallocatedtoaseparate
account shall be credited to or charged against the account, without regard to other income,
gains or losses of the company.
2.Except as may be provided with respect to reserves for guaranteed benefits and funds
referred to in s
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Adomesticlifeinsurancecompanyorganizedunderchapter508mayestablishoneormore
separate accounts, and may allocate to such accounts 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 to such life insurance or annuities,
payable in fixed or variable amounts or both, and may hold and accumulate funds pursuant
to funding agreements, subject to the following:
1. Theincome, gainsandlosses, realizedorunrealized, fromassetsallocatedtoaseparate
account shall be credited to or charged against the account, without regard to other income,
gains or losses of the company.
2. Except as may be provided with respect to reserves for guaranteed benefits and funds
referred to in subsection 3:
a. Amountsallocatedtoanyseparateaccountandaccumulationsthereonmaybeinvested
and reinvested without regard to any requirements or limitations prescribed by the laws of
this state governing the investments of such life insurance companies; and
b. Theinvestmentsinsuchseparateaccountoraccountsshallnotbetakenintoaccountin
applyingtheinvestmentlimitationsotherwiseapplicabletotheinvestmentsofsuchcompany.
3. Except with the approval of the commissioner of insurance and under such conditions
as to investments and other matters as the commissioner may prescribe, which shall
recognize the guaranteed nature of the benefits provided, reserves for benefits guaranteed
as to dollar amount and duration and funds guaranteed as to principal amount or stated rate
of interest shall not be maintained in a separate account.
4. Unless otherwise approved by the commissioner of insurance, assets allocated to a
separateaccountshallbevaluedattheirmarketvalueonthedateofvaluation, orifthereisno
readilyavailablemarket, thenasprovidedunderthetermsofthecontractortherulesorother
written agreement applicable to such separate account; however, unless otherwise approved
by the commissioner of insurance, the portion, if any, of the assets of such separate account
equal to the company’s reserve liability with regard to the guaranteed benefits and funds
referred to in subsection 3 shall be valued in accordance with the rules otherwise applicable
to the company’s assets.
5. Amounts allocated to a separate account in the exercise of the power granted by this
chapter 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. Unless it is provided to the contrary under
the applicable contracts, that portion of the assets of any such separate account 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.
6. No sale, exchange or other transfer of assets may be made by such 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, provided that such transfer of securities is
approved by the commissioner of insurance. The commissioner of insurance may approve
other transfers among such accounts if, in the commissioner’s opinion, such transfers would
not be inequitable.
7. To the extent such company deems it necessary to comply with any applicable federal
§508A.1, VARIABLE ANNUITIES AND LIFE INSURANCE 2
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.
8. If the assets of an insurer allocated to and accumulated in a separate account in
connection with any policy, annuity, agreement, instrument, or contract, after the satisfaction
of any liabilities with regard to the operation of the separate account, are insufficient to fully
satisfy the insurer’s express obligations under the policy, annuity, agreement, instrument, or
contract, then claims for the unsatisfied portions of the insurer’s obligations shall be class 2
claims under section 507C.42, subsection 2.