508A.1 Basic requirements. A domestic life insurance company organized under chapter 508 may establish one or more separate accounts, and may allocate to such accounts amounts, including without limitationproceeds applied under optional modes of settlement or under dividend options, to providefor life insurance or annuities, and benefits incidental to such life insurance or annuities,payable in fixed or variable amounts or both, and may hold and accumulate funds pursuantto funding agreements, subject to the following: 1. The income, gains and losses, realized or unrealized, from assets allocated to a separate account shall be credited to or charged against the account, without regard to other income,gains or losses of the company. 2. Except as may be provided with respect to reserves for guaranteed benefits and funds referred to in subsection 3: a. 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 ofthis state governing the investments of such life insurance companies; and b. lations thereon may be invested and reinvested without regard to any requirements or limitations prescribed by the laws ofthis state governing the investments of such life insurance companies; and b. 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 such company. 3. Except with the approval of the commissioner of insurance and under such conditions as to investments and other matters as the commissioner may prescribe, which shallrecognize the guaranteed nature of the benefits provided, reserves for benefits guaranteedas to dollar amount and duration and funds guaranteed as to principal amount or stated rateof interest shall not be maintained in a separate account. 4. Unless otherwise approved by the commissioner of insurance, assets allocated to a separate account shall be valued at their market value on the date of valuation, or if there is noreadily available market, then as provided under the terms of the contract or the rules or otherwritten agreement applicable to such separate account; however, unless otherwise approvedby the commissioner of insurance, the t, then as provided under the terms of the contract or the rules or otherwritten agreement applicable to such separate account; however, unless otherwise approvedby the commissioner of insurance, the portion, if any, of the assets of such separate accountequal to the company’s reserve liability with regard to the guaranteed benefits and fundsreferred to in subsection 3 shall be valued in accordance with the rules otherwise applicableto the company’s assets. 5. Amounts allocated to a separate account in the exercise of the power granted by this chapter shall be owned by the company, and the company shall not be, nor hold itself outto be, a trustee with respect to such amounts. Unless it is provided to the contrary underthe applicable contracts, that portion of the assets of any such separate account equal to thereserves and other contract liabilities with respect to such account shall not be chargeablewith liabilities arising out of any other business the company may conduct. 6. No sale, exchange or other transfer of assets may be made by such company between any of its separate accounts or between any other investment account and one or more ofits separate accounts unless, in case , exchange or other transfer of assets may be made by such company between any of its separate accounts or between any other investment account and one or more ofits separate accounts unless, in case of a transfer into a separate account, such transfer ismade solely to establish the account or to support the operation of the contracts with respectto the separate account to which the transfer is made, and unless such transfer, whetherinto or from a separate account, is made by a transfer of cash, or by a transfer of securitieshaving a readily determinable market value, provided that such transfer of securities isapproved by the commissioner of insurance. The commissioner of insurance may approveother transfers among such accounts if, in the commissioner’s opinion, such transfers wouldnot be inequitable. 7. To the extent such company deems it necessary to comply with any applicable federal or state laws, such company, with respect to any separate account, including withoutlimitation any separate account which is a management investment company or a unitinvestment trust, may provide for persons having an interest therein appropriate votingand other rights and special procedures for y separate account which is a management investment company or a unitinvestment trust, may provide for persons having an interest therein appropriate votingand other rights and special procedures for the conduct of the 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 selectionof a committee, the members of which need not be otherwise affiliated with such company,to manage the business of such account. Sat Dec 23 00:40:50 2023 Iowa Code 2024, Section 508A.1 (14, 0) §508A.1, VARIABLE ANNUITIES AND LIFE INSURANCE 2 8. If the assets of an insurer allocated to and accumulated in a separate account in connection with any policy, annuity, agreement, instrument, or contract, after the satisfactionof any liabilities with regard to the operation of the separate account, are insufficient to fullysatisfy the insurer’s express obligations under the policy, annuity, agreement, instrument, orcontract, then claims for the unsatisfied portions of the insurer’s obligations shall be class 2claims under section 507C.42, subsection 2. gations under the policy, annuity, agreement, instrument, orcontract, then claims for the unsatisfied portions of the insurer’s obligations shall be class 2claims under section 507C.42, subsection 2. [C75, 77, 79, 81, §508A.1]98 Acts, ch 1057, §5; 2006 Acts, ch 1117, §32Referred to in §507C.2, 507C.42, 508.31A, 508.32, 508.32A Sat Dec 23 00:40:50 2023 Iowa Code 2024, Section 508A.1 (14, 0)
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