California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 11.2 - Separate Account or Accounts-Modified Guaranteed Annuities › Section 2534.26 - Separate Account or Accounts

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
A domestic insurer issuing modified guaranteed annuities
					 shall establish one or more separate accounts pursuant to California Insurance
					 Code Section
					 10506,
					 subject to the following provisions:
(a) Separate account assets relating to
				  modified guaranteed annuities will be subject to the investment laws of this
				  state governing the investments of the insurer's general account assets.
				  Separate account assets relating to modified guaranteed annuities shall be
				  added to the insurer's general account assets in order to test conformity with
				  investment laws governing general account assets.
(b) The same separate account may not be used
				  for both variable annuities and variable life insurance, both variable
				  annuities and modified guaranteed annuities or both variable life insurance and
				  modified guaranteed annuities.
(c)
				  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, then as provided under the terms of the
				  contract or the rules or other written agreement applicable to such separate
				  account.
(d) If and to the extent
				  so provided 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 insurer may conduct.
(e) No sale, exchange or other transfer of
				  assets may be made by an insurer 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 a transfer, whether into or from a separate account, is made either by a
				  transfer of cash or by a transfer of securities having a valuation which could
				  be readily determined in the marketplace, provided that such transfer of
				  securities is approved by the Commissioner. The Commissioner may authorize
				  other transfers among such accounts if, in the Commissioner's opinion, such
				  transfers would not be inequitable.
(f) The provisions of California Insurance
				  Code Sections
				  1101
				  through
				  1106
				  relating to conflicts of interest pertaining to officers and directors and
				  other persons with authority in the management of the insurer's funds shall, in
				  substance and insofar as they are reasonably applicable, apply to the
				  investments of separate accounts and to members of any separate account
				  committee, board or body who have any function in relation to the investment of
				  the account assets. No officer or director of such insurer nor any member of
				  the committee, board or body of a separate account shall receive directly or
				  indirectly any commission or any other compensation with respect to the
				  purchase or sale of assets of such separate account.
1. New
					 section filed 2-6-92; operative 3-9-92 (Register 92, No.
					 13).
Note: Authority cited: Sections
						10506(h)
						and
						10506.3(a),
						Insurance Code. Reference: Sections
						1101-
						1106,
						10506,
						10506(h)
						and
						10506.3(a),
						Insurance Code.