Code of Maine Rules › 02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION › 031 - BUREAU OF INSURANCE › Chapter 310 - VARIABLE ANNUITY RULE › Article VIII - Separate Accounts › Section 031-310-VIII-7 - Charges against separate account(s)

Current through 2024-29, July 17, 2024
The insurer must disclose in writing, prior to or
					 contemporaneously with delivery of the policy, charges that may be made against
					 the separate account, including, but not limited to, the following:
a. taxes or reserves for taxes attributable
				  to investment gains and income of the separate account;
b. actual cost of reasonable brokerage fees
				  and similar direct acquisition and sale costs incurred in the purchase or sale
				  of separate account assets;
c.
				  costs of coverage and the release of separate account liabilities;
d. charges for administrative expenses and
				  investment management expenses, including internal costs attributable to the
				  investment management of assets of the separate account;
e. a charge for any mortality or expense
				  guarantees;
f. any amounts in
				  excess of those required to be held in the separate accounts; and
g. charges for incidental insurance benefits.
Every insurer seeking approval to enter into the variable
					 annuity business in this state shall adopt by formal action of its Board of
					 Directors a written statement specifying the Standards of Conduct of the
					 insurer, its officers, directors, employees, and affiliates with respect to the
					 purchase or sale of investments of separate accounts. Such Standards of Conduct
					 shall be binding on the insurer and those to whom it refers. A code or codes of
					 ethics meeting the requirements of Section 17(j) under the Investment Company
					 Act of 1940 and applicable rules and regulations thereunder shall satisfy the
					 provisions of this Section.
Rules under any provision of the Insurance Code of Maine or
					 any regulation applicable to the officers and directors of insurance companies
					 with respect to conflicts of interest shall also apply to members of any
					 separate account's committee or other similar body.
An insurer shall not enter into a contract under which any
					 person undertakes, for a fee, to regularly furnish investment advice to such
					 insurer with respect to its separate accounts maintained for variable annuity
					 contracts unless:
a. the person
				  providing such advice is registered as an investment adviser under the
				  Investment Advisers Act of 1940; or
b. the person providing such advice is an
				  investment manager under the Employee Retirement Income Security Act of 1974
				  with respect to the assets of each employee benefit plan allocated to the
				  separate account; or
c. the insurer
				  has filed with the Superintendent and continues to file annually the following
				  information and statements concerning the proposed adviser:
(1) the name and form of organization, state
				  of organization, and its principal place of business;
(2) the names and addresses of its partners,
				  officers, directors, and persons performing similar functions or, if such an
				  investment adviser be an individual, of such individual;
(3) a written Standard of Conduct complying
				  in substance with the requirements of Section 8 of this Article which has been
				  adopted by the investment adviser and is applicable to the investment adviser,
				  its officers, directors, and affiliates;
(4) a statement provided by the proposed
				  adviser as to whether the adviser or any person associated therewith:
(A) has been convicted within ten years of
				  any felony or misdemeanor arising out of such person's conduct as an employee,
				  salesman, officer or director of an insurance company, a banker, an insurance
				  agent, a securities broker, or an investment adviser involving embezzlement,
				  fraudulent conversion, or misappropriation of funds or securities, or involving
				  the violation of Section 1341, 1342, or 1343 of Title 18 of United States
				  Code;
(B) has been permanently or
				  temporarily enjoined by order, judgment, or decree of any court of competent
				  jurisdiction from acting as an investment adviser, underwriter, broker, or
				  dealer, or as an affiliated person or as an employee of any investment company,
				  bank, or insurance company, or from engaging in or continuing any conduct or
				  practice in connection with any such activity;
(C) has been found by a federal or state
				  regulatory authority to have willfully violated or have acknowledged willful
				  violation of any provision of federal or state securities laws or state
				  insurance laws or of any rule or regulation under any such laws; or
(D) has been censured, denied an investment
				  adviser registration, had a registration as an investment advisor revoked or
				  suspended, or been barred or suspended from being associated with an investment
				  adviser by order of federal or state regulatory authorities; and
d. such investment
				  advisory contract shall be in writing and provide that it may be terminated by
				  the insurer without penalty to the insurer or the separate account upon no more
				  than sixty days' written notice to the investment adviser. The Superintendent
				  may, after notice and opportunity for hearing, by order require such investment
				  advisory contract to be terminated if he or she deems continued operation
				  thereunder to be hazardous to the public or the insurer's
				  policyholders.