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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 profitsharing 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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