Sec. 38a-459-7 - Unilateral synthetic guaranteed investment contract terminations

ยง 38a-459-7. Unilateral synthetic guaranteed investment contract terminations

A contract subject to sections 38a-459-1 to 38a-459-9, inclusive, of the Regulations of Connecticut State Agencies shall allow the insurance company to unilaterally and immediately terminate, without future liability of the insurance company or obligation to provide further benefits, upon the occurrence of any one of the following events that is material and that is not cured within 30 days following the insurance company's discovery of it:

(1) The investment guidelines are changed without the advance consent of the insurance company and the investment manager is not controlling, controlled by, or under common control with the insurance company;

(2) The segregated portfolio, if managed by an entity that is not controlling, controlled by, or under common control with the insurance company, is invested in a manner that does not comply with the investment guidelines; or

(3) Investment discretion over the segregated portfolio is exercised by or granted to anyone other than the investment manager.

(Adopted effective June 1, 2002)

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