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Title 3 . Commerce, Community, and Economic Development
Chapter 28 . Miscellaneous
Section 60. Separate account or separate accounts

3 AAC 28.060. Separate account or separate accounts

(a) A domestic company issuing variable contracts shall establish one or more separate accounts subject to the provisions of (b) - (g) of this section.

(b) Except as may be provided with respect to reserves for guaranteed benefits and funds referred to in (c) of this section

(1) 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 life insurance companies; and

(2) 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 the company.

(c) Reserves for benefits guaranteed as to dollar amount and duration and reserves for funds guaranteed as to principal amount or stated rate of interest may be maintained in a separate account if a portion of the assets of the separate account at least equal to the reserve liability is invested according to the laws and regulations of this state governing the investments of life insurance companies. That portion of the assets also may not be taken into account in applying the investment limitations otherwise applicable to the investments of the company. If a variable contract includes incidental minimum guarantees as referred to in 3 AAC 28.140(d) (3), this subsection applies only to the reserve for any excess of those minimum guarantees over the reserves for the benefits that would be payable under the contract if there were no minimum guarantees.

(d) With respect to 75 percent of the market value of the total assets in a separate account, no company shall purchase or otherwise acquire the securities of any issuer, other than securities issued or guaranteed as to principal or interest by the United States, if immediately after such purchase or acquisition the market value of such investment, together with prior investments of the separate account in this security taken at market value would exceed 10 percent of the market value of the assets of the separate account; provided, however, that the director may waive such limitation if, in his opinion, such waiver will not render the operation of such separate account hazardous to the public or the policyholders in this state.

(e) Unless otherwise permitted by law or approved by the director, no company shall purchase or otherwise acquire for its separate accounts the voting securities of any issuer if as a result of such acquisition the insurance company and its separate accounts, in the aggregate, will own more than 10 percent of the total issued and outstanding voting securities of such issuer; provided that the foregoing shall not apply with respect to securities held in separate accounts, the voting rights in which are exercisable only in accordance with instructions from persons having interests in such accounts.

(f) The same separate account may not be used for both variable annuities and variable life insurance.

(g) The limitations provided in (d), (e) and (f) of this section shall not apply to the investment with respect to a separate account in the securities of an investment company registered under the Investment Company Act of 1940, provided that the investments of such investment company comply in substance with (d) and (e) of this section.

History: Eff. 11/8/73, Register 48; am 3/31/82, Register 81

Authority: AS 21.06.090

AS 21.42.370


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Last modified 7/05/2006