Louisiana Administrative Code
Title 37 - INSURANCE Part
Part XIII - Regulations
Chapter 77 - Regulation 28-Variable Contract Regulation
Section XIII-7705 - Separate Account or Separate Accounts
Universal Citation: LA Admin Code XIII-7705
Current through Register Vol. 50, No. 9, September 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.
AUTHORITY NOTE: Promulgated in accordance with R.S. 22:1500 of the Revised Statutes of 1950.
Disclaimer: These regulations may not be the most recent version. Louisiana may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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