Section 26-A2718. SEPARATE ACCOUNTS: ESTABLISHMENT AND ADMINISTRATION

 

2718.1The following requirements apply to the establishment and administration of variable life insurance separate accounts by any domestic insurer:

 

2718.2Any domestic insurer issuing variable life insurance shall establish one or more separate accounts accordance with the Insurance Laws of the District.

 

2718.3If no law or other regulation provides for the custody of separate account assets and if such insurer is not the custodian of such separate account assets, all contracts for custody of such assets shall be in writing and the Commissioner shall have authority to review and approve of both the terms of any such contract and the proposed custodian prior to the transfer of custody.

 

2718.4Such insurer shall not without prior written approval of the Commissioner employ in any material in connection with the handling of separate account assets any person who:

 

(a)Within the last ten (10) years has been convicted of any felony or a misdemeanor arising out of such person's conduct involving embezzlement, fraudulent conversion, or misappropriation of funds or securities or involving violation of Sections 1341, 1342 or 1343 of Title 18, United States Code; or

 

(b)Within the last ten (10) years has been found by any state regulatory to have violated or has acknowledged violation of any provision of any state insurance law involving fraud, deceit or knowing misrepresentation; or

 

(c)Within the last ten (10) years has been found by federal or state regulatory authorities to have violated or has acknowledged violation of any provision of federal or state securities laws involving fraud, deceit or knowing misrepresentation.

 

2718.5All persons with access to the cash, securities, or other assets of the separate account shall be under bond in the amount of not less than the greater of $500,000 or 25 percent of the assets to which the person has access, but the bond need not exceed 5 million dollars.

 

2718.6The assets of such separate accounts shall be valued at least as often as variable benefits are determined but in any event at least monthly.

 

source

Final Rulemaking published at 42 DCR 1047 (February 24, 1995).