Section 30. Separate accounts; provisions

Article III. Separate Account or Separate Accounts

A domestic company issuing variable contracts shall establish one or more separate accounts pursuant to § 38.2-3113 of the Code of Virginia of the insurance laws of this Commonwealth, subject to the following provisions of this article:

1. Unless otherwise approved by the Commission assets allocated to a separate account shall be valued at their market value on the date of valuation, or if there is no readily available market, then as provided under the terms of the contract or the rules or other written agreement applicable to such separate account.

2. No sale, exchange or other transfer of assets may be made by a company between any of its separate accounts or between any other investment account and one or more of its separate accounts unless, in case of a transfer into a separate account, such transfer is made solely to establish the account or to support the operation of the contracts with respect to the separate account to which the transfer is made, and unless such transfer, whether into or from a separate account is made (i) by a transfer of cash, or (ii) by a transfer of securities having a valuation which could be readily determined in the marketplace, provided that such transfer of securities is approved by the Commission. The Commission may authorize other transfers among such accounts if, in its opinion, such transfers would not be inequitable.

3. The company shall maintain in each such separate account assets with a value at least equal to the reserves and other contract liabilities with respect to such account, except as may otherwise be approved by the Commission.

4. Rules under any provision of the insurance laws of this Commonwealth or any regulation applicable to the officers and directors of insurance companies with respect to conflicts of interest shall also apply to members of any separate account's committee, board or other similar body. No officer or director of such company nor any member of the committee, board or body of a separate account shall receive directly or indirectly any commission or any other compensation with respect to the purchase or sale of assets of such separate account.

5. A company may with respect to any separate account registered with the Securities and Exchange Commission as a unit investment trust exercise voting rights in connection with any securities of a regulated investment company registered under the Investment Company Act of 1940 (15 USC § 80a-1 et seq.) and held in such separate accounts in accordance with instructions from persons having interests in such accounts ratably as determined by the company.

Historical Notes

Derived from Regulation 3, Case No. 18623, § 4, eff. March 1, 1969.

Statutory Authority

§ 38.2-3113 of the Code of Virginia.