N.Y. Comp. Codes R. & Regs. Tit. 11 §§ 50-2.6

Current through Register Vol. 46, No. 51, December 18, 2024

Section 50-2.6 - Insurer contributions to separate accounts

(a) An insurer may, upon the establishment and during the initial stages of a separate account allocate and contribute funds to the separate account as a participant for a limited period and without the purpose of funding annuities, using funds that it might otherwise invest in accordance with Insurance Law section 1405(a)(6) and (8) and invest in the same type of securities as may be purchased for the separate accounts for the purpose of providing for the effective and economical diversification of investments by the separate account and to facilitate the orderly establishment and maintenance of that separate account. The insurer shall have a proportionate interest in any such account, along with all other participating contract holders, to the extent of its participation therein and with respect thereto shall be subject to all the provisions of Insurance Law section 4240 applicable to separate account contract holders generally.

(b) Except as may be permitted in writing by the superintendent, the aggregate amount, net of withdrawals made pursuant to subdivision (d) of this section, so allocated and contributed by the insurer in accordance with subdivision (a) of this section to one or more separate accounts, shall not exceed the lesser of:

(1) $500,000, plus not more than $125,000 for each separate account in excess of four to which the insurer so allocates and contributes funds;

(2) one percent of the insurer's admitted assets as of December 31 next preceding; or

(3) five percent of the insurer's surplus to policyholders as of said date.

(c) All sums allocated and contributed by the insurer pursuant to this section to a separate account for the purpose of participating therein shall be included in applying the investment limitations specified in Insurance Law section 1405.

(d) The insurer may at any time, in whole or in part, withdraw its contributions to a separate account made pursuant to this section, whereupon it shall be entitled to receive therefrom its proportionate share of the value of the assets of the separate account as of the time of withdrawal.

N.Y. Comp. Codes R. & Regs. Tit. 11 §§ 50-2.6

Adopted New York State Register August 31, 2022/Volume XLIV, Issue 35, eff. 8/31/2022