Authority: IC
27-1-3-7
Affected: IC
27-1-5-1
Sec. 5.
Any insurance company which issues Class I(c) contracts shall
establish such administrative and accounting procedures as are necessary to
properly identify a segregated investment account of the company derived from
or in relation to contributions, premiums or considerations received by it
under Class I(c) contracts. A Class I(c) contract may provide that all or a
portion of the segregated investment account is derived from a designated
percentage of specific assets in the company's general investment portfolio. No
insurance company which issues Class I(c) contracts shall transfer assets
between segregated investment accounts or between any such account and other
accounts except for the purposes of (1) conducting the business of such account
in accordance with provisions of the Class I(c) contract, or (2) making the
adjustments necessitated by the Class I(c) contract and the mortality
experience adjustment specified in Section 59 (IC
27-1-5-1
) of the Indiana insurance laws, and then only if such transfers are
made-
(i) by a transfer of cash,
or
(ii) by a transfer of securities
having a value which can readily be determined in the market place, provided
such transfer of securities has been approved by the department in advance of
the transfer, or
(iii) by a
transfer of assets other than cash or securities having a value which can
readily be determined in the market place if, in the opinion of the department,
such transfer is not inequitable, provided such transfer of other assets has
been approved by the department in advance of the transfer.
This provision shall not preclude or prohibit any of the
following procedures:
(a) The exchange
of securities in a segregated investment account may be made for cash from the
general investment account of an insurance company, or the exchange of
securities in such general investment account may be made for cash from a
segregated investment account if
(i) the
securities so exchanged have values which can readily be determined in the
market place,
(ii) the exchange is
made on the basis of the market values applicable to the securities at the time
of the exchange, and
(iii) the
consent of the department to such exchange has been obtained in
advance.
(b) The sale of
securities, for cash, from a segregated investment account and the purchase
thereof, for cash, by an insurance company for its general investment account
may be made in bona fide sale and purchase transactions involving one or more
persons other than the insurance company and its officers or
affiliates.
(c) The sale of
securities, for cash, from the general investment account of an insurance
company and the purchase thereof, for cash, for a segregated investment account
of the company selling such securities may be made in bona fide sale and
purchase transactions involving one or more persons other than the insurance
company and its officers or affiliates.
(d) In respect of a Class I(c) contract
providing that all or a portion of the segregated investment account is derived
from a designated percentage of specific assets in the company's general
investment portfolio, a change in said designated percentage may be made
provided the change arises (i) by reason of the contractual withdrawals from or
additions to such account or (ii) by reason of changes in said specific assets
because of acquisitions or disposals.
Notes
760 IAC 1-7-5
Department of Insurance;
Reg 7,V; filed Feb 3, 1964, 9:40 am: Rules and Regs. 1965, p. 97; filed Mar 18,
1970, 10:20 am: Rules and Regs. 1971, p. 206; filed Apr 16, 1984, 3:53 pm: 7 IR
1518; readopted filed Sep 14, 2001, 12:22 p.m.: 25 IR 530; readopted filed Nov
27, 2007, 4:01 p.m.: 20071226-IR-760070717RFA; readopted filed November 26,
2013, 3:43 p.m.: 20131225-IR-760130479RFA
Readopted
filed 11/19/2019, 9:18 a.m.:
20191218-IR-760190497RFA
