§ 5-512. Investment accounts for funding qualified plans
West's Annotated Code of MarylandInsuranceEffective: July 1, 2007
Effective: July 1, 2007
MD Code, Insurance, § 5-512
§ 5-512. Investment accounts for funding qualified plans
(a) A life insurer may allocate to one or more separate investment accounts in accordance with a written agreement any amounts paid to the life insurer that are to be invested by the life insurer in accordance with the agreement and applied to the purchase of guaranteed income benefits under the life insurer's individual or group policies or annuity contracts or to provide other guaranteed benefits incidental to those policies or annuity contracts.
(b) Any income and gains and losses, realized or unrealized, on each separate investment account shall be credited to or charged against the amounts allocated to the account in accordance with the agreement without regard to other income, gains, or losses of the life insurer.
(c)(1) Amounts allocated to separate investment accounts and accumulations on the accounts may be invested and reinvested in any class of investments authorized under this article as life insurance reserve investments.
(3) A separate investment account may invest in any investments contractually permitted for the separate investment account and specified in a plan of operation, and the restrictions, limitations, and other provisions of this article relating to investments shall not apply to the investments contained in the separate investment account, provided that prior to delivery or issuance for delivery in the State, the form of the policy or annuity contract and the plan of operation have been filed with and approved by the Commissioner.
(d) Unless a life insurer limits its liability under the guarantee to the interest of the contract holder in the investments, a life insurer may not guarantee:
(e)(1) A life insurer owns the amounts that the life insurer allocates to a separate investment account under this section.
(3) To the extent provided under the applicable contracts, the part of the assets of the separate investment account equal to the reserves and other contract liabilities with respect to the account may not be chargeable with liabilities arising out of any other business that the insurer may conduct.
(f) At all times, the investments and liabilities of each separate investment account shall be clearly identifiable and distinguishable on the books of the life insurer from other investments and liabilities of the life insurer.
(g) Unless the Commissioner approves, a life insurer may not transfer by sale, exchange, substitution, or otherwise from one investment account to another investment account an investment in any separate investment account or in the general investment account of the life insurer.
(h)(1) In connection with the allocation of investments or expenses or in any other manner, a life insurer may not discriminate unfairly between:
(i)(1) Investments made with respect to separate investment accounts shall be valued for the purpose of any valuation required by this article:
(2)(i) If a separate investment account provides a fixed guaranteed return that is not subject to market value adjustment, the life insurer shall hold assets that equal or exceed the reserve amount that would be required if the separate investment account was an obligation of the life insurer's general account.
Credits
Added by Acts 1995, c. 36, § 1, eff. Oct. 1, 1997. Amended by Acts 1999, c. 569, § 1, eff. Oct. 1, 1999; Acts 2003, c. 106, § 1, eff. Oct. 1, 2003; Acts 2007, c. 22, § 1, eff. July 1, 2007; Acts 2007, c. 23, § 1, eff. July 1, 2007.
Formerly Art. 48A, § 96A.
MD Code, Insurance, § 5-512, MD INSURANCE § 5-512
Current through legislation effective through April 9, 2023, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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