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- Alaska Statutes.
- Title 21. Insurance
- Chapter 42. The Insurance Contract
- Section 370. Separate Accounts.
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AS 21.42.370. Separate Accounts.
- (a) A domestic life insurance company may establish one or more separate accounts, and may allocate to an account amounts,
including proceeds applied under optional methods of settlement or under divided options, to provide for life insurance
or annuities and benefits incidental to the account, payable in fixed or variable amounts or both.
- (b) 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.
- (c) Except as may be provided for reserves for guaranteed benefits and funds referred to in (d) of this section, amounts
allocated to a separate account and accumulations to it may be invested and reinvested in securities eligible for
investment for life insurance companies without regard to quantitative investment limitations prescribed by law for
life insurance companies. The investments from separate accounts may not be considered in applying the investment
limitations otherwise applicable to the investments of the company.
- (d) Reserves for benefits guaranteed as to dollar amount and duration and for funds guaranteed as to principal amount or
stated rate of interest may not be maintained in a separate account, unless approved by the director and in accordance
with conditions as to investments and other matters prescribed by the director. In imposing conditions, the director
shall take into consideration the guaranteed nature of the benefits provided.
- (e) Unless otherwise approved by the director,
- (1) 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 a separate account; and
- (2) the portion of the assets of a separate account equal to the company's reserve liability for the guaranteed benefits
and funds referred to in (d) of this section shall be valued under the rules applicable to the valuation of the
company's other assets.
- (f) Amounts allocated to a separate account as provided in this section shall be owned by the company, and the company may
not be, nor hold itself out to be, a trustee for those amounts. If the applicable contracts so provide, that portion of
the assets of a separate account equal to the reserves and other contract liabilities of that account may not be
chargeable with liabilities arising out of any other business the company may conduct.
- (g) A sale, exchange, or other transfer of assets may not be made by a company among its separate accounts or between
other investment accounts and one or more of its separate accounts, unless, in the 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 of the
separate account to which the transfer is made, and unless the transfer, whether into or from a separate account, is
made (1) by a transfer of cash, or (2) by a transfer of securities having a readily determinable market value, unless
the transfer of securities is approved by the director. The director may approve other transfers among these accounts
if the transfers would be equitable.
- (h) To the extent the company considers it necessary in order to comply with applicable federal or state laws, the company
may give persons having an interest in a separate account, including a separate account that is a management investment
company or a unit investment trust, appropriate voting and other rights and may adopt special procedures for the
conduct of the business of the account which include 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.
- (i) A 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. A contract under which the benefits vary to reflect investment experience,
including a group contract and certificate in evidence of variable benefits issued under it, must state that the dollar
benefit amount will vary and must contain on its first page a statement that the benefits under it are on a variable
- (j) A company may not deliver or issue for delivery in this state variable contracts unless it is licensed or organized to
undertake a life insurance or annuity business in this state. The director may review the company's financial condition
or method of operation for the issuance of contracts payable in variable amounts to determine whether the company's
operation is hazardous to the public or its policyholders in this state. During the review the director shall consider
(1) the history and financial condition of the company; (2) the character, responsibility, and fitness of the officers
and directors of the company; and (3) the laws and regulations under which the company is authorized in the state of
domicile to issue variable contracts. If the company is a subsidiary of an admitted life insurance company, or
affiliated with an admitted company through common management or ownership, the director may consider that the company
meets the provisions of this subsection if either it or the parent or the affiliated company meets the requirements of
this subsection. If the company fails to meet the requirements contained in this subsection, the director may suspend
the certificate of authority of the company until the requirements are met or may prohibit the further issuance of
- (k) The director has sole authority to regulate the issuance and sale of variable contracts, to examine and license agents
to sell variable contracts, and to adopt regulations considered appropriate to carry out the purposes and provisions of
- (l) Except for AS 21.45.030
, 21.45.080, 21.45.110, 21.45.180, 21.45.230, 21.45.240, 21.45.290, 21.45.300, and AS 21.48.110
, and except as otherwise provided in this section, the provisions of this title apply to separate accounts and
contracts relating to them. An individual variable life insurance contract delivered or issued for delivery in the
state must contain grace reinstatement and nonforfeiture provisions appropriate to that contract. An individual
variable annuity contract delivered or issued for delivery in the state must contain grace and reinstatement provisions
appropriate for that contract. A group variable life insurance contract delivered or issued for delivery in the state
must contain a grace provision appropriate for that contract. The reserve liability for variable contracts shall be
established in accordance with actuarial procedures, acceptable to the director, that recognize the variable nature of
the benefits provided and any mortality guarantees.
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