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304.15-390 Pension, retirement, profit-sharing, life insurance, or annuity
agreements -- Separate accounts.
(1)
(2)
(3)
(4)
(5)
(6)
(7)
A domestic life insurer may establish one (1) or more separate accounts, and
may allocate thereto, in accordance with the terms of a written contract or
agreement, any amounts paid to the insurer in connection with a pension,
retirement or profit-sharing plan, life insurance, or an annuity which are to be
applied to provide benefits payable in fixed or in variable dollar amounts or in
both.
The income, if any, and gains and losses, realized or unrealized, on each such
account shall be credited to or charged against the amounts allocated to the
account in accordance with the agreement, without regard to other income,
gains or losses of the insurer.
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 in
accordance with the terms of the applicable contract or agreement; except, that
the portion of the assets of such separate account at least equal to the
insurer's reserve liability with regard to the guaranteed benefits and funds
referred to in subsection (1) of this section, if any, shall be valued in
accordance with rules otherwise applicable to the insurer's assets.
If the agreement provides for payment of benefits in variable amounts, the
contract shall contain a statement of the essential features of the procedure to
be followed by the insurer in determining the dollar amount of such variable
benefits. Any such contract and any certificate issued thereunder shall state
that such dollar amount may decrease or increase and shall contain on its first
page a statement that the benefits thereunder are on a variable basis.
No domestic life insurer, and no other authorized life insurer, shall be
authorized to deliver within this state any such contract or agreement providing
benefits in variable amounts until the insurer has satisfied the commissioner
that its condition or methods of operation in connection with the issuance of
such contracts or agreements will not render its operation hazardous to the
public or its policyholders in this state. In determining the qualification of an
insurer requesting such authority, the commissioner shall consider, among
other things:
(a) The history and financial condition of the insurer;
(b) The character, responsibility and general fitness of the officers and
directors of the insurer; and
(c) In the case of an insurer other than a domestic insurer, whether the
statutes or regulations of the jurisdiction of its incorporation provide a
degree of protection to policyholders and the public which is substantially
equal to that provided by this section and the rules and regulations issued
thereunder.
Amounts allocated by domestic life insurers to separate accounts in the
exercise of the power granted by this section shall be owned by the insurer and
the insurer shall not be, or hold itself to be, a trustee, in respect to such
amounts.
The commissioner shall have sole authority to regulate the issuance and sale
of such agreements, and to make rules and regulations for the effectuation of
this section.
Effective:July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 1188, effective July 15, 2010. -Amended 1986 Ky. Acts ch. 437, sec. 20, effective July 15, 1986. -- Created
1970 Ky. Acts ch. 301, subtit. 15, sec. 39, effective June 18, 1970.
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