SECTION 365:10-9-13. Separate account or separate accounts

(a)   Separate accounts. A domestic company issuing variable annuity contracts shall establish one or more separate accounts pursuant to 36 O.S. §§6061-6062 and the following provisions:

(1)   Except as hereinafter provided, amounts allocated to any separate account and accumulations thereon may be invested and reinvested without regard to any requirements or limitations prescribed by the laws of this state governing the investments of life insurance companies; provided, that to the extent that the company's reserve liability with regard to:

(A)   benefits guaranteed as to dollar amount and duration, and

(B)   funds guaranteed as to principal amount of stated rate of interest is maintained in any separate account, a portion of the assets of such separate account, at least equal to such reserve liability, shall be, except as the Commissioner may otherwise approve, invested in accordance with the laws of this state governing the investments of life insurance companies. The investments in such separate account or accounts shall not be taken into account in applying the investment limitations applicable to the investments of the company.

(2)   With respect to 75% of the market value of the total assets in a separate account no company shall purchase or otherwise acquire the securities of any issuer, other than securities issued or guaranteed as to principal or interest by the United States, if immediately after such purchase or acquisition the market value of such investment, together with prior investments of such separate account in such security taken at market, would exceed 10% of the market value of the assets of said separate account. The Commissioner may waive such limitations if, in his opinion, such waiver will not render the operation of such separate account hazardous to the public or the policyholders.

(3)   No separate accounts shall invest in the voting securities of a single insurer, if such investment would result in the company owning an amount in excess of 10% of the total issued and outstanding voting securities of such insurer; provided, that the foregoing shall not apply with respect to securities held in separate accounts, the voting rights in which are exercisable only in accordance with instructions from persons having an interest in such accounts.

(4)   The limitations provided in (2) and (3) of this subsection shall not apply to the investment with respect to a separate account in the securities of an investment company registered under the Investment Company Act of 1940, provided that the investments of such investment company comply in substance with (2) and (3) of this subsection.

(b)   Valuation of assets in separate accounts. Unless otherwise approved by the Commissioner, 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 in accordance with the applicable contract or the rules or other written agreement applicable to such separate account; provided, that the portion of the assets of such separate account, equal to the company's reserve liability with regard to the benefits and funds referred to in 365:10-9-13 of this subsection, if any, shall be valued in accordance with the rules otherwise applicable to the company's assets.

(c)   Separate accounts not chargeable with liabilities. If and to the extent so provided under the applicable contracts, that portion of the assets of any such separate account equal to the reserves and other contract liabilities with respect to such account, such account shall not be chargeable with liabilities arising out of any other business the company may conduct.

(d)   Accounts registered with the Securities and Exchange Commission. Notwithstanding any other provisions of law a company may:

(1)   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, and held in such separate accounts in accordance with instructions from persons having interests in such accounts ratably as determined by the company; or

(2)   with respect to any separate account registered with the Securities and Exchange Commission as a management investment company, establish for such account a committee, board, or other body, the members of which may or may not be otherwise affiliated with such company and may be elected to such membership by the vote of persons having an interest in such account ratable as determined by the company. Such committee, board or other body may have the power, exercisable alone or in conjunction with others, to manage such separate account and the investment of its assets. A company, committee, board or other body may make such other provisions in respect to any such separate account as may be deemed appropriate to facilitate compliance with requirements of any Federal or State law now or hereafter in effect; provided that the Commissioner approves such provisions as not hazardous to the public or the company's policyholders in this state.

(e)   Transactions between separate accounts. 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:

(1)   by a transfer of cash, or

(2)   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 Commissioner. The Commissioner may authorize other transfers among such accounts if, in his opinion, such transfers would not be inequitable.

(f)   Separate account assets value equal to reserves. 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 Commissioner.

(g)   Conflicts of interest. Rules under any provision of the Insurance Laws of this state 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.