New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter III - Policy and Certificate Provisions › Subchapter A - Life, Accident and Health Insurance › Part 54 - Variable Life Insurance › Section 54.3 - Separate accounts

Current through Register Vol. 46, No. 28, July 10, 2024
Every separate account established for the funding of
					 variable life insurance policies pursuant to section 4240  of the Insurance Law shall be subject
					 to the following provisions of this section:
(a) Except as may otherwise be permitted in
				  writing by the superintendent, every company shall maintain in each separate
				  account assets with a value at least equal to the greater of the valuation
				  reserves for the variable portion of the variable life insurance policies or
				  the benefit base for such policies and other separate account liabilities with
				  respect to such account.
(b) Except
				  as set forth in subdivision (g) of this section, the assets of such separate
				  accounts shall be valued at least as often as variable benefits are determined,
				  but in any event at least monthly.
(c) 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 policies 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 (1) by a transfer of
				  cash, or (2) by a transfer of securities having a valuation which can be
				  readily determined in the market-place, provided that such transfer of
				  securities is approved by the superintendent. The superintendent may authorize
				  other transfers among such accounts if, in his opinion, such transfers would
				  not be inequitable.
(d) Expenses
				  shall be allocated to the separate account business in accordance with the
				  provisions of section 4240 (a)(6)  of the
				  Insurance Law and Part 91 of this Title.
(e) Each company which establishes one or
				  more separate accounts pursuant to section 4240  of the Insurance Law shall maintain a
				  record of the special contingent reserve fund showing progress in the repayment
				  of the fund and the sum of advances from surplus made to establish or maintain
				  the fund. A current statement of such record as of the end of each calendar
				  year shall be filed with the superintendent on or before March 1st of the next
				  following calendar year.
(f)
				  Conflicts of interest rules under any provision of the Insurance Law or any
				  regulation promulgated thereunder which are applicable to the officers or
				  directors of insurance companies shall also apply to the members of the
				  committee, board or other similar body of every separate account. No officer or
				  director of any company maintaining a separate account, nor any member of the
				  committee, board or other similar body of the separate account, shall receive,
				  in addition to his fixed salary or compensation, any commission, other
				  compensation, money or valuable thing, either directly or indirectly, with
				  respect to the purchase, sale or loan of the assets of the separate
				  account.
(g) The assets of a
				  separate account established to provide life insurance under private placement
				  variable life insurance policies shall be valued at least as often as variable
				  benefits are determined, but no less frequently than annually. The
				  determination of the value of the assets of a separate account, to the extent
				  necessary, may be based upon reasonable approximations.