Section 408:30 Separate Accounts.
I. Any domestic life insurance corporation which issues variable contracts shall establish one or more separate accounts known as variable contract accounts. Any amounts received by the company which are required by the variable contracts to be applied to provide variable benefits shall be added to the appropriate variable contract account, and the assets of any such variable contract account shall not be chargeable with liabilities arising out of any other business the company may conduct. The company shall not, however, be a trustee with respect to such amounts. If at any time there should be a deficit in any such variable contract account because of mortality experience, the company shall make additions to such an account, at least as often as annually, so that the assets of such account shall be sufficient to satisfy the company's mortality obligation for such variable benefits. If at any time there should be a surplus in any such variable contract account because of mortality experience, the company may make withdrawals from such an account, not more frequently than annually, so that the assets of such account shall equal the amount required to satisfy the company's mortality obligation for such variable benefits.
II. No sale, exchange or other transfer of assets may be made by a company between any of its variable contract accounts or between any other investment account and one or more of its variable contract accounts unless, in case of a transfer into a variable contract account, such transfer is made solely to establish the account or to support the operation of the contracts with respect to the variable contract account to which the transfer is made, and unless such transfer, whether into or from a variable contract account, is made (a) by a transfer of cash, or (b) by a transfer of securities having a readily determinable market value, provided that such transfer of securities is approved by the commissioner. The commissioner may approve other transfers among such accounts if, in his opinion, such transfers would not be inequitable.
III. To the extent such company deems it necessary to comply with any applicable federal or state laws, such company, with respect to any variable contract account, including without limitation any variable contract 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 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.
IV. If and to the extent so provided under the applicable contracts, that portion of the assets of any such variable contract 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.
Source. 1967, 272:2. 1977, 264:4, eff. Aug. 21, 1977.