A domestic company issuing variable annuity contracts shall
establish one or more separate accounts pursuant to Section 33-11-35 of the
Insurance Law of this State, subject to the following provisions of this
Section:
(1) Except as hereinafter
provided, amounts allocated to any separate account and accumulation thereon
may be invested and reinvested without regard to any requirements or
limitations prescribed by the laws of this State governing the investments of
life insurance companies; provided, that 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 shall be, invested in
accordance with the laws of this State governing the investments of life
insurance companies. The investments in such separate account or accounts shall
not be taken into account in applying the investment limitations applicable to
the investments of the company.
(2)
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 and funds
referred to in clauses (a) and (b) of paragraph (1), if any, shall be valued in
accordance with the rules otherwise applicable to the company's
assets.
(3) Notwithstanding any
other provisions of law a company may
(a) with
respect to any separate account registered with the Securities and Exchange
Commission as a unit investment trust excercise 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
(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 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.
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 case, or (b) by a transfer of securities
having a valuation which could be readily determined in the marketplace,
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 accounts assets with a value at least equal to the reserves and other
contract liabilities with respect to such account.
(6) Rules under any provision of the
Insurance Laws of this State 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 officer or director of such company nor any members of the
committee, board or body of a 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.
Notes
Ga. Comp. R.
& Regs. R.
120-2-22-.03
O.C.G.A. Secs.
33-2-9,
33-11-35.
Original Rule entitled
"Separate Account or Separate Accounts" adopted. F. Dec. 11, 1969; eff. Dec. 1, 1969, as specified by the
Agency.
Submitted for Publishing:
Mar. 7,
2007.