California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 10.1 - Investment Annuities › Section 2522.10 - Accepted Assets List

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a)
				  The insurer shall establish and file for approval by the Insurance Commissioner
				  a listing of accepted assets which may be held as investments in a segregated
				  custodian account. The Accepted Assets List shall be extensive and expressed
				  generally as to kinds of investments acceptable. Acceptability as to either a
				  class of asset or as to any specific assets within a class shall be based upon
				  the asset having a reasonably ascertainable market value available from reports
				  of regular market trading or established by recurring commercial transactions
				  not involving trading in assets, and compatibility of the asset with
				  administrative procedures established by the insurer for the investing and
				  accounting of assets within the account.
(b) The insurer shall also file with the
				  Commissioner its standards for the amendment of its Accepted Assets List by the
				  addition or deletion of classes of assets. The procedures for the addition or
				  deletion of specific assets within a class shall also be filed at the time of
				  filing the Accepted Assets List. In the event an asset is deleted as an
				  acceptable asset, such asset may be required to be sold and the proceeds
				  reinvested or its acceptability may be terminated with regard to future
				  investments only.
(c) In the event
				  that the insurer amends the Accepted Assets List or deletes a specific asset,
				  it shall file notice of such action and the reason for such action, as
				  specified in subsection (h) below, with the Insurance Commissioner.
(d) The following is an example of an
				  Accepted Assets List:
(1) Securities listed
				  and traded on the New York Stock Exchange, the American Stock Exchange or
				  regional stock exchanges or successors to such exchanges having the same or
				  similar qualifications;
(2)
				  Securities listed on the NASDAQ System;
(3) Shares of an investment company
				  registered pursuant to the Investment Company Act of 1940 other than an
				  investment company affiliated with either the insurer or the custodian. Where
				  such an investment company issues book shares in lieu of share certificates,
				  such book shares shall be deemed to be adequate evidence of
				  ownership;
(4) Obligations of or
				  guaranteed by the United States government, the Canadian government, any state
				  (or province of Canada), or municipality or governmental subdivision of a
				  state;
(5) Savings accounts,
				  passbook accounts and certificates of deposit issued by financial institutions
				  which are insured by the FDIC or FSLIC, cash, and credit union loan accounts as
				  such credit union loan accounts are otherwise permitted;
(6) New bond or debt issues which may
				  reasonably be expected to be listed on an exchange regulated by the Securities
				  Exchange Act of 1934;
(7) Life
				  insurance the face amount of which is incidental in relationship to the
				  anticipated annuity benefit payments. In accordance with current Internal
				  Revenue Rulings and for the purpose of this Article, the word "incidental" as
				  used in the preceding sentence means that life insurance shall be considered
				  incidental if the face amount does not exceed one hundred(100) times the
				  anticipated monthly annuity computed as if the percentage of net annual
				  increase in the account value will be equal to the assumed investment increment
				  rate underlying the actuarial assumption on which the amount of monthly annuity
				  is based;
(8) Such other classes of
				  assets which meet the standards of acceptability of the insurer after filing of
				  such list with the Insurance Commissioner.