Section 2534.23 - Application of Domestic InsurersThe application of a domestic insurer to write any modified guaranteed annuity shall include the following:
(a) A copy of the resolution of its board of directors, certified by the secretary or equivalent officer under corporate seal to be a full and true copy thereof, authorizing the establishing of one or more separate accounts for the purposes authorized by Section 10506;(b) A copy of each written agreement specifying how each such separate account is to be established, maintained and administered, including for information purposes a copy of each modified guaranteed annuity proposed to be delivered or issued for delivery in California;(c) A statement of the additional amount, if any, of the insurer's assets, other than those amounts received from modified guaranteed annuity holders for deposit in such a separate account, which have been allocated to a separate account pursuant to the authority of California Insurance Code Section 10506(b). No more than 1% of its admitted assets, or 5% of the excess of its admitted assets over its liabilities and required reserves, both as of the preceding December 31, whichever is the smaller, may be so allocated;(d) A statement of the history, organization, ownership and control of the insurer. Any changes in organization, ownership or control which are contemplated shall also be set forth. Reference to past official examination reports, whether by California or other insurance regulatory authority, if appropriately brought up to date, is acceptable. Similarly, reference to other records bearing upon such matters, which have become part of the Commissioner's official files, are acceptable;(e) A brief balance sheet statement of assets, liabilities, capital and surplus, as shown by its last filed Annual Statement. The Annual Statement filed will be relied upon for details;(f) A complete statement of the plan and methods, including the marketing methods for the transaction of the modified guaranteed annuity and related business, which shall show: (1) The status of the insurer of each of the separate accounts with the Federal Securities and Exchange Commission, including; (A) Any exemption granted under Section 3(c)(11) of the Investment Company Act of 1940 and Section 3(a)(2) of the Securities Act of 1933;(2) If any modified guaranteed annuity is to be issued without a prospectus, an explanation as to marketing methods, and upon request, for informational purposes, a copy of the advertising or solicitation material;(3) The methods of control and management of each separate account, including the voting rights, if any, of participants, how they are exercised and their relation to the voting rights, if any, of members and shareholders of the insurer;(g) If the insurer has not engaged actively in the insurance business for at least five years under substantially the same management and control, a biographical affidavit in a format prescribed by the Commissioner may, in the discretion of the Commissioner, be required for each of the executive officers, members of the board of directors and each natural person who owns 10% or more of the voting stock of the insurer;(h) The identity, the experience and qualification of each of the persons charged with the investment management of each separate account, together with any other presentation which the insurer desires to make to establish the adequacy of the investment management which the insurer is providing. Such showing shall be such as to satisfy the Commissioner as to the experience and qualification of such management to effectively manage the investment program or programs envisaged by the agreement under which the separate account is established and maintained. A biographical affidavit in the format required by Paragraph (g) hereof may be required for each such manager;(i) If the insurer is a subsidiary of an admitted insurer, or affiliated with such insurer by common control or management, it may be deemed by the Commissioner that the history, the reputation, the character, responsibility and general fitness of officers and directors, the adequacy of investment management as evidenced by past results, and the basic financial soundness of the parent insurer or the controlling affiliate satisfy these regulations; Subsequent to qualification, any amendments to the above-mentioned resolution of the Board of Directors, agreement establishing a separate account, modified guaranteed annuity, registration statement or prospectus, and any substantial change in management shall promptly be filed with the Commissioner for review as to continuance of qualification standards required by law.
Cal. Code Regs. Tit. 10, § 2534.23
1. New section filed 2-6-92; operative 3-9-92 (Register 92, No. 13). Note: Authority cited: Sections 10506.3(a) and 10506(h), Insurance Code. Reference: Sections 10506, 10506(b), 10506(h) and 10506.3(a), Insurance Code.
1. New section filed 2-6-92; operative 3-9-92 (Register 92, No. 13).