2009 Iowa Code
Title 13 - Commerce
Subtitle 1 - Insurance and Related Regulation
CHAPTER 508A - VARIABLE ANNUITIES AND LIFE INSURANCE
508A.1 - BASIC REQUIREMENTS.

        508A.1  BASIC REQUIREMENTS.
         A domestic life insurance company organized under chapter 508 may
      establish one or more separate accounts, and may allocate to such
      accounts amounts, including without limitation proceeds applied under
      optional modes of settlement or under dividend options, to provide
      for life insurance or annuities, and benefits incidental to such life
      insurance or annuities, payable in fixed or variable amounts or both,
      and may hold and accumulate funds pursuant to funding agreements,
      subject to the following:
         1.  The income, gains and losses, realized or unrealized, from
      assets allocated to a separate account shall 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 subsection 3:
         a.  Amounts allocated to any separate account and
      accumulations thereon may be invested and reinvested without regard
      to any requirements or limitations prescribed by the laws of this
      state governing the investments of such life insurance companies; and

         b.  The investments in such separate account or accounts shall
      not be taken into account in applying the investment limitations
      otherwise applicable to the investments of such company.
         3.  Except with the approval of the commissioner of insurance and
      under such conditions as to investments and other matters as the
      commissioner may prescribe, which shall recognize the guaranteed
      nature of the benefits provided, reserves for benefits guaranteed as
      to dollar amount and duration and funds guaranteed as to principal
      amount or stated rate of interest shall not be maintained in a
      separate account.
         4.  Unless otherwise approved by the commissioner of insurance,
      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; however, unless otherwise approved by the commissioner of
      insurance, the portion, if any, of the assets of such separate
      account equal to the company's reserve liability with regard to the
      guaranteed benefits and funds referred to in subsection 3 shall be
      valued in accordance with the rules otherwise applicable to the
      company's assets.
         5.  Amounts allocated to a separate account in the exercise of the
      power granted by this chapter shall be owned by the company, and the
      company shall not be, nor hold itself out to be, a trustee with
      respect to such amounts.  Unless it is provided to the contrary 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 company may conduct.
         6.  No sale, exchange or other transfer of assets may be made by
      such 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 by a transfer of cash, or by a transfer of
      securities having a readily determinable market value, provided that
      such transfer of securities is approved by the commissioner of
      insurance.  The commissioner of insurance may approve other transfers
      among such accounts if, in the commissioner's opinion, such transfers
      would not be inequitable.
         7.  To the extent such company deems it necessary to comply with
      any applicable federal or state laws, such 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 such 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 such company, to manage the business of such account.

         8.  If the assets of an insurer allocated to and accumulated in a
      separate account in connection with any policy, annuity, agreement,
      instrument, or contract, after the satisfaction of any liabilities
      with regard to the operation of the separate account, are
      insufficient to fully satisfy the insurer's express obligations under
      the policy, annuity, agreement, instrument, or contract, then claims
      for the unsatisfied portions of the insurer's obligations shall be
      class 2 claims under section 507C.42, subsection 2.  

         Section History: Early Form

         [C75, 77, 79, 81, § 508A.1] 

         Section History: Recent Form

         98 Acts, ch 1057, § 5; 2006 Acts, ch 1117, §32
         Referred to in § 507C.2, 507C.42, 508.31A, 508.32, 508.32A