Louisiana Administrative Code › Title 37 - INSURANCE › Part XIII - Regulations › Chapter 77 - Regulation 28-Variable Contract Regulation › Section XIII-7705 - Separate Account or Separate Accounts

Current through Register Vol. 50, No. 6, June 20, 2024
A. A domestic company issuing variable
				contracts shall establish one or more separate accounts pursuant to
				R.S.
				22:781.
1.
				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, provided that the portion of the assets of such separate account equal
				to the company's reserve liability with regard to the benefits guaranteed as to
				amount and duration, and funds guaranteed as to principal amount or stated rate
				of interest shall be valued in accordance with the rules otherwise applicable
				to the company's asset.
2. 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 company may
				conduct.
3.
a. Notwithstanding any other provision of
				law, a company may:
i. with respect to any
				separate account registered with the Securities and Exchange Commission as a
				unit investment trust, exercise voting rights in connection with any securities
				of a regulated investment company registered under the Investment Company Act
				of 1940 and held in such separate accounts in accordance with instructions from
				persons having interests in such accounts ratably, as determined by the
				company; or
ii. with respect to any
				separate account registered with the Securities and Exchange Commission as a
				management investment company, establish for such account a committee, board,
				or other body, the members of which may or may not be otherwise affiliated with
				such company and may be elected to such membership by the vote of persons
				having interests in such account ratably, as determined by the company. Such
				committee, board, or other body may have the power, exercisable alone or in
				conjunction with others, to manage such separate account and the investment of
				its assets.
b. A
				company, committee, board, or other body may make such other provisions in
				respect to any such separate account as may be deemed appropriate to facilitate
				compliance with requirements of any federal or state law now or hereafter in
				effect, provided that the commissioner approves such provisions as not
				hazardous to the public or the company's policyholders in this state.
4. No sale, exchange, or other
				transfer of assets may be made by a 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:
a. by a transfer of cash; or
b. by a transfer of securities having a
				valuation which could be readily determined in the marketplace, and provided
				that such transfer of securities is approved by the commissioner. The
				commissioner may authorize other transfers among such accounts if, in his
				opinion, such transfers would not be inequitable.
5. The company shall maintain in each such
				separate account assets with a value at least equal to the reserves and other
				contract liabilities with respect to such account, except as may otherwise be
				approved by the commissioner.
6.
				Rules under any provision of R.S. 22: 781 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,
				board, or other similar body. No officers or directors of such company nor any
				member of the committee, board, or 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.