Current through August 31, 2023
01.
Domestic
Life Insurer. A domestic life insurer issuing variable contracts and
establishing one (1) or more separate accounts pursuant to Sections
41-1936 and
41-734 of the Idaho Insurance Code
is subject to the following provisions: (3-31-22)
a. To the extent that the company's reserve
liability with regard to:
(a) benefits
guaranteed as to dollar amount and duration, and
(b) funds guaranteed as to principal amount
or stated rate of interest is maintained in any separate account, a portion of
the assets of such separate account at least equal to such reserve liability
are invested in accordance with the laws of this state governing the
investments of life insurance companies. (3-31-22)
b. With respect to seventy-five percent (75%)
of the market value of the total assets in a separate account no insurer may
purchase or otherwise acquire the securities of any issuer, other than
securities issued or guaranteed as to principal or interest by the United
States, if immediately after such purchase or acquisition the market value of
such investment, together with prior investments of such separate account in
such security taken at market value, would exceed ten percent (10%) of the
market value of the assets of said separate account. The Director may waive
such limitation if such waiver will not render the operation of such separate
account hazardous to the public or the policyholders in this state.
(3-31-22)
c. Unless otherwise
permitted by law or approved by the Director, no insurer may purchase or
acquire for its separate accounts the voting securities of any issuer if as a
result of such acquisition the insurance company and its separate accounts, in
the aggregate, will own more than ten percent (10%) of the total issued and
outstanding voting securities of such issuer. The foregoing does not apply with
respect to securities held in separate accounts with voting rights exercisable
only in accordance with instructions from persons having interests in such
accounts. (3-31-22)
d. The
limitations provided in Subsections
012.01.b. and 012.01.c. above
do not apply to the investment with respect to a separate account in the
securities of an investment company registered under the Investment Company Act
of 1940, provided that the investments of such investment company comply in
substance with Subsections
012.01.b. and 012.01.c.
(3-31-22)
02.
Chargeability of Assets with Liabilities. That portion of the
assets of any such separate account equal to the reserves and other contract
liabilities with respect to such account is not chargeable with liabilities
arising out of any other business the insurer may conduct. Notwithstanding any
other provisions of law an insurer may: (3-31-22)
a. 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 insurer, or
(3-31-22)
b. 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 cannot be 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 insurer. 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.
An insurer, committee, board or other body, may make such other provisions in
respect to any such separate account which are appropriate to facilitate
compliance with requirements of any Federal or State law, provided that the
Director approves such provisions as not hazardous to the public or the
company's policyholders in this state. (3-31-22)
03.
Assets Equal to Reserves and
Liabilities. The company will 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. (3-31-22)
04.
Officers and Directors.
Rules under any provision of the Insurance Law of this state of any rule
applicable to the officers and directors of insurance companies with respect to
conflicts of interest also apply to members of any separate account's
committee, board or other similar body. No officer or director of such company
nor any member of the committee, board or body of a separate account will
receive directly or indirectly any commission or any other compensation with
respect to the purchase or sale of assets of such separate account.
(3-31-22)
