Section 2534.26 - Separate Account or AccountsA domestic insurer issuing modified guaranteed annuities shall establish one or more separate accounts pursuant to California Insurance Code Section 10506, subject to the following provisions:
(a) Separate account assets relating to modified guaranteed annuities will be subject to the investment laws of this state governing the investments of the insurer's general account assets. Separate account assets relating to modified guaranteed annuities shall be added to the insurer's general account assets in order to test conformity with investment laws governing general account assets.(b) The same separate account may not be used for both variable annuities and variable life insurance, both variable annuities and modified guaranteed annuities or both variable life insurance and modified guaranteed annuities.(c) 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.(d) 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 insurer may conduct.(e) No sale, exchange or other transfer of assets may be made by an insurer 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 a transfer, whether into or from a separate account, is made either by a transfer of cash or 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 the Commissioner's opinion, such transfers would not be inequitable.(f) The provisions of California Insurance Code Sections 1101 through 1106 relating to conflicts of interest pertaining to officers and directors and other persons with authority in the management of the insurer's funds shall, in substance and insofar as they are reasonably applicable, apply to the investments of separate accounts and to members of any separate account committee, board or body who have any function in relation to the investment of the account assets. No officer or director of such insurer nor any member 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.Cal. Code Regs. Tit. 10, § 2534.26
1. New section filed 2-6-92; operative 3-9-92 (Register 92, No. 13). Note: Authority cited: Sections 10506(h) and 10506.3(a), Insurance Code. Reference: Sections 1101- 1106, 10506, 10506(h) and 10506.3(a), Insurance Code.
1. New section filed 2-6-92; operative 3-9-92 (Register 92, No. 13).