New York Codes, Rules and Regulations
Title 11 - INSURANCE
Chapter III - Policy and Certificate Provisions
Subchapter A - Life, Accident and Health Insurance
Part 50 - Separate Accounts and Separate Account Contracts
Section 50.4 - Insurer contributions to separate accounts

Universal Citation: 11 NY Comp Codes Rules and Regs ยง 50.4

Current through Register Vol. 46, No. 12, March 20, 2024

(a) A company which establishes one or more separate accounts pursuant to section 4240 of the Insurance Law, as amended, may, upon the establishment and during the initial stages of such separate accounts and for the purpose of providing for effective and economical diversification of investments by such separate accounts so as to facilitate their orderly establishment and maintenance, participate therein by allocating and contributing to such separate accounts as a participant but for a limited period and without the purpose of funding annuities, funds which it might otherwise invest, in accordance with section 1405 of the Insurance Law, in the same type of securities as may be purchased for the separate accounts. The insurer shall have a proportionate interest in any such account, along with all other participating contractholders, to the extent of its participation therein and with respect thereto shall be subject to all the provisions of section 4240 of the Insurance Law applicable to separate account contractholders generally.

(b) Except as may otherwise be permitted in writing by the superintendent, the aggregate amount, net of withdrawals made pursuant to subdivision (d) of this section, so allocated and contributed by the company in accordance with subdivision (a) of this section to one or more separate accounts, shall not exceed the least of:

(1) $500,000, plus not more than $125,000 for each separate account in excess of four to which the company so allocates and contributes funds; or

(2) one percent of the company's admitted assets as of December 31st next preceding; or

(3) five percent of the company's surplus to policyholders as of said date.

(c) All sums allocated and contributed by the company pursuant to this section to a separate account for the purpose of participating therein shall be included in applying the investment limitations specified in section 1405 of the Insurance Law.

(d) The company may at any time, in whole or in part, withdraw its contributions to a separate account made pursuant to this section, whereupon it shall be entitled to receive therefrom its proportionate share of the value of the assets of the separate account as of the time of withdrawal.

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