General Accounts Product Clarifications Act
Bill: H.R.9515 | Sponsor: Rep. Morelle, Joseph D. (D-NY)
Policy area: Labor and Employment

Summary:
General Accounts Product Clarifications Act
This bill specifies requirements for the application of the Employee Retirement Income Security Act of 1974 (ERISA) to general account policies that receive contributions from employee benefit plans. A general account policy is an insurance policy or contract to the extent that the policy or contract allocates amounts to the insurer's general account, including any surplus in a separate account but excluding any other portion of a separate account.

To amend the Employee Retirement Income Security Act of 1974.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``General Accounts Product 
Clarifications Act''.

SEC. 2. APPLICATION OF ERISA TO INSURANCE COMPANY GENERAL ACCOUNTS AND 
              GENERAL ACCOUNT CONTRACTS.

    (a) Section 3(21) of the Employee Retirement Income Security Act of 
1974 (29 U.S.C. 1002(21)) is amended--
            (1) in subparagraph (A), by striking ``subparagraph (B)'' 
        and inserting ``subparagraphs (B) and (C)''; and
            (2) by adding the following new subparagraph (C):
                    ``(C) If any money or other property of an employee 
                benefit plan is contributed to a general account policy 
                (as defined in section 401(b)(2)(B)) offered by an 
                insurer, such contribution shall not by itself cause 
                such insurer to be deemed to be a fiduciary or a party 
                in interest as those terms are defined in this title, 
                except insofar as such insurer acts in connection with 
                an employee benefit plan covering employees of the 
                insurer. Nothing contained in this subparagraph shall 
                limit the duties imposed on such insurer by any other 
                law.''.
    (b) Section 401 of the Employee Retirement Income Security Act of 
1974 (29 U.S.C. 1101) is amended--
            (1) by amending subsection (b)(2) to read as follows:
            ``(2) In the case of a plan which contributes to a general 
        account policy offered by an insurer, the assets of such plan 
        shall be deemed to include the insurance promises and 
        guarantees granted to the plan under such policy, subject to 
        any reserved rights of the insurer, but shall not be deemed to 
        include the general account policy, any contractual rights 
        reserved to the insurer under such policy, or any other assets 
        of the insurer. For purposes of this paragraph:
                    ``(A) The term `insurer' means an insurance 
                company, insurance service, or insurance organization, 
                qualified to do business in a State.
                    ``(B) The term `general account policy' means an 
                insurance policy or contract offered by an insurer to 
                the extent that such policy or contract allocates 
                amounts to the insurer's general account, including any 
                surplus in a separate account but excluding any other 
                portion of a separate account.''; and
            (2) by striking subsection (c).
    (c) Effective Date.--The amendments made by this section shall be 
given retroactive effect and shall apply effective as of the date that 
is six years prior to the date of enactment.
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