Section 500.624. Separate accounts.

(1) An insurer issuing contracts on a variable basis shall not use the same separate account for both annuity contracts  on   a  variable basis and contracts of life insurance on a variable basis.

(2)    An insurer issuing contracts on a variable basis shall maintain in each separate account assets having a value equal to the reserves and other reasonable liabilities and obligations with respect to the account.If the securities and exchange commission requires that an account have a minimum balance before solicitation is permitted, the insurer  may participate in the separate account  in   order  to  comply  with   the requirement but the initial value of the amount  so  invested  shall   not exceed by more than 25% the amount required by the securities and exchange commission, and the insurer shall redeem the units so purchased within  6 months after the account acquires other assets sufficient  to   satisfy   the requirements of the securities and exchange commission. Any surplus or deficit which occurs in a separate account because of mortality experience guaranteed by the insurer shall be adjusted at least annually at the end of each calendar year by withdrawals from or additions to the separate account so that the assets of the account equal the liabilities.

(3)    A separate account shall not be charged with liabilities arising out of other separate accounts or out of other business of the insurer unless the liabilities have a specific and determinable relation to or dependence upon the separate account.

(4)   Assets allocated to a separate account shall be  valued  at  their market value on the date of valuation. Where possible, market values of common stocks shall be established by quotations of securities exchanges located in the United States or Canada or by credible over-the-counter market quotations. Where such quotations are  not  available,  the   assets shall be valued in accordance with reasonable   rules  applicable  to   the separate account or if there are no reasonable rules to be applicable, in accordance with reasonable valuation procedures prescribed    by    the commissioner.

History: 1979 AC.