Section R. 500.857 - Separate accounts; limitations on ownership of securitiesRule 17. The following apply to limitations on ownership by a separate account for variable life insurance:
(a) A variable life insurance separate account shall not purchase or otherwise acquire the securities of any issuer, other than securities issued or guaranteed as to principal and interest by the United States, if immediately after such purchase or acquisition the value of such investment, together with prior investments of such separate account in such security valued as required by these rules, would exceed 10% of the value of the assets of the separate account. The commissioner may waive this limitation in writing if he believes such waiver will not render the operation of the separate account hazardous to the public or the policyholders in this state.(b) No separate account shall purchase or otherwise acquire the voting securities of any issuer if as a result of such acquisition the insurer and its separate accounts, in the aggregate, will own more than 10% of the total issued and outstanding voting securities of such issuer. The commissioner may waive this limitation in writing if he believes such waiver will not render the operation of the separate account hazardous to the public or the policyholders in this state or jeopardize the independent operation of the issuer of such securities.(c) The percentage limitation specified in subdivision (a) of this rule shall not be construed to preclude the investment of the assets of separate accounts in shares of investment companies registered pursuant to the investment company act of 1940 if the investments and investment policies of such investment companies comply substantially with the provisions of R 500.856 and other applicable rules.Mich. Admin. Code R. 500.857