2005 Illinois 215 ILCS 5/ Illinois Insurance Code. ArticleXIVv 1/2 - Separate Accounts
(215 ILCS 5/Art. XIV.5 heading)
ARTICLE XIV 1/2.
SEPARATE ACCOUNTS
(215 ILCS 5/245.21) (from Ch. 73, par. 857.21)
Sec. 245.21.
Establishment of separate accounts by domestic companies
organized to do a life, annuity, or accident and health insurance business. A
domestic company, including for the purposes of this
Article all domestic fraternal benefit
societies, may, for authorized
classes of insurance, establish one or more
separate accounts, and may allocate thereto amounts (including without
limitation proceeds applied under optional modes of settlement or under
dividend options) to provide for life, annuity, or accident and health
insurance (and benefits
incidental thereto), payable in fixed or variable amounts or both, subject
to the following:
(1) The income, gains and losses, realized or unrealized, from
assets allocated to a separate account must be credited to or charged
against the account, without regard to other income, gains or losses of
the company.
(2) Except as may be provided with respect to reserves for
guaranteed benefits and funds referred to in paragraph (3) of this
Section (i) amounts allocated to any separate account and accumulations
thereon may be invested and reinvested without regard to any requirements
or limitations of Part 2 or Part 3 of Article VIII of this Code and (ii) the
investments in any separate account or accounts may not be taken into
account in applying the investment limitations otherwise applicable to the
investments of the company.
(3) Except with the approval of the Director and under the
conditions as to investments and other matters as the Director may
prescribe,
that must recognize the guaranteed nature of the benefits provided,
reserves for (i) benefits guaranteed as to dollar amount and duration
and (ii) funds guaranteed as to principal amount or stated rate of
interest may not be maintained in a separate account.
(4) Unless otherwise approved by the Director, assets allocated to a
separate account must be valued at their market value on the date of
valuation, or if there is no readily available market, then as provided
in the contract or the rules or other written agreement applicable to
the separate account. Unless otherwise approved by the Director, the
portion, if any, of the assets of the separate account equal to the
company's reserve liability with regard to the guaranteed benefits and
funds referred to in paragraph (3) of this Section must be valued in
accordance with the rules otherwise applicable to the company's assets.
(5) Amounts allocated to a separate account under this Article are
owned by the company, and the company may not be, nor hold itself out to
be, a trustee with respect to those amounts. The assets of any
separate account equal to the reserves and other contract liabilities
with respect to the account may not be charged with liabilities arising
out of any other business the company may conduct.
(6) 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, the 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 the transfer, whether into or from a separate account, is made
(i) by a transfer of cash, or (ii) by a transfer of securities having a
readily determinable market value, if the transfer of securities is
approved by the Director. The Director may approve other transfers among
those accounts if, in his or her opinion, the transfers would not be
inequitable.
(7) To the extent a company considers it necessary to comply with
any applicable federal or state laws, the company, with respect to any
separate account, including without limitation any separate account
which is a management investment company or a unit investment trust, may
provide for persons having an interest therein appropriate voting and
other rights and special procedures for the conduct of the business of
the account, including without limitation special rights and procedures
relating to investment policy, investment advisory services, selection
of independent public accountants, and the selection of a committee, the
members of which need not be otherwise affiliated with the company, to
manage the business of the account.
(Source: P.A. 90‑381, eff. 8‑14‑97; 90‑418, eff. 8‑15‑97;
90‑655, eff. 7‑30‑98.)
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(215 ILCS 5/245.22) (from Ch. 73, par. 857.22)
Sec. 245.22.
Any contract providing benefits payable in variable amounts delivered or
issued for delivery in this State must contain a statement of the essential
features of the procedures to be followed by the insurance company in
determining the dollar amount of the variable benefits. Any such contract
under which the benefits vary to reflect investment experience, including a
group contract and any certificate in evidence of variable benefits issued
thereunder, must state that such dollar amount will so vary and must
contain on its first page a statement to the effect that the benefits
thereunder are on a variable basis.
(Source: P. A. 77‑1572.)
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(215 ILCS 5/245.23) (from Ch. 73, par. 857.23)
Sec. 245.23.
No company may deliver or issue for delivery within this State variable
contracts unless it is authorized or organized to do a
life, annuity, or accident and health insurance business in this State, and the Director is satisfied that its
condition or method of operation in connection with the issuance of such
contracts will not render its operation hazardous to the public or its
policyholders in this State. In this connection, the Director may consider
among other things:
(a) The history and financial condition of the company;
(b) The character, responsibility and fitness of the officers and
directors of the company; and
(c) The law and regulation under which the company is authorized in its
state of domicile to issue variable contracts.
If the company is a subsidiary of an authorized insurance
company, or
affiliated with such a company through common management or ownership, it
may be deemed by the Director to have met the requirements of this Section
if either it or the parent or the affiliated company meets the requirements
of this Section.
(Source: P.A. 90‑381, eff. 8‑14‑97.)
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(215 ILCS 5/245.24) (from Ch. 73, par. 857.24)
Sec. 245.24.
Notwithstanding any other provision of law, the Director has sole
authority to regulate the issuance and sale of variable contracts, and to
promulgate such reasonable rules and regulations as may be appropriate to
carry out the purposes and provisions of this Article.
(Source: P. A. 77‑1572.)
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(215 ILCS 5/245.25) (from Ch. 73, par. 857.25)
Sec. 245.25.
Except for subparagraphs (1)(a), (1)(f), (1)(g) and (3) of
Section
226 of the Illinois Insurance Code, in the case of a variable annuity
contract and subparagraphs (1)(b), (1)(f), (1)(g), (1)(h), (1)(i), and
(1)(k) of Section 224, subparagraph (1)(c) of Section 225, and
subparagraph (h) of Section 231 in the case of a variable life insurance
policy, except for Sections 357.4, 357.5, 367e, and 367e.1 in the
case of a variable
health insurance policy, and except as otherwise provided in this Article,
all pertinent
provisions of the Illinois Insurance Code which are appropriate to those
contracts apply to separate accounts and
contracts relating thereto. Any individual variable life insurance
contract, delivered or issued for delivery in this State, must contain
grace, reinstatement and non‑forfeiture provisions appropriate to such a
contract. Any individual variable annuity contract, delivered or issued for
delivery in this State, must contain grace and reinstatement provisions
appropriate to such a contract. Any group variable life insurance contract,
delivered or issued for delivery in this State, must contain a grace
provision appropriate to such a contract. A group variable health insurance
contract delivered or issued for delivery in this State must contain a
continuation of group coverage provision appropriate to the contract. The
reserve liability for
variable contracts must be established in accordance with actuarial
procedures that recognize the variable nature of the benefits provided and
any mortality guarantees.
(Source: P.A. 93‑477, eff. 1‑1‑04.)
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(215 ILCS 5/245.60) (from Ch. 73, par. 857.60)
Sec. 245.60.
Whenever the Director finds that there has been a violation of
this Article or of any rules or regulations issued pertaining thereto, and
after written notice thereof and hearing given to the company or other
person authorized or licensed by the Director, he shall set forth his
findings, together with an order for compliance by a specific date. Such
order shall be binding on the company and other persons authorized or
licensed by the Director on the date specified unless sooner withdrawn by
the Director or a stay thereof has been ordered by a court of competent
jurisdiction.
(Source: Laws 1963, p. 1137.)
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(215 ILCS 5/245.61) (from Ch. 73, par. 857.61)
Sec. 245.61.
(Repealed).
(Source: Laws 1963, p. 1137. Repealed by P.A. 90‑381, eff. 8‑14‑97.)
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(215 ILCS 5/245.62) (from Ch. 73, par. 857.62)
Sec. 245.62.
(Repealed).
(Source: P.A. 77‑1572. Repealed by P.A. 90‑381, eff. 8‑14‑97.)
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