Chapter 9: legal considerations III. Claims G. Assets that are not General Assets, Special Deposits and Letters of Credit


Products (Variable or Fixed) Backed by Separate Accounts NOT Registered under the 1940 Act



Download 85.23 Kb.
Page6/31
Date03.04.2021
Size85.23 Kb.
1   2   3   4   5   6   7   8   9   ...   31
2. Products (Variable or Fixed) Backed by Separate Accounts NOT Registered under the 1940 Act:

If a separate account has been used by an insurer to back certain kinds of benefits guaranteed by the insurer under certain annuity contracts or life policies, the 1940 Act may not always apply to that separate account. However,



(a) A separate account not governed by the 1940 Act may nevertheless be treated as legally insulated under a state's receivership act:

  • If the state variable contract law (and the policy/contract, if necessary) so provide.

  • If a state insurance law requires that a separate account be held for the benefit of specified persons, it is not a general asset under an act based on IRMA or IRLMA.

  • If the separate account is established as a "valid and existing" express trust for the security or benefit of specified persons as described in the receivership act, it is excluded from the general assets of the receivership under an act based on IRMA or IRLMA.

  • If the receivership act's distribution scheme contains a provision that governs the treatment of a separate account, and the account is established as specified by such provision, then claims under the separate account agreement are payable from the account as provided by the provision.



Share with your friends:
1   2   3   4   5   6   7   8   9   ...   31




The database is protected by copyright ©essaydocs.org 2020
send message

    Main page