C.R.S. Section 10-7-402
Investment contract funds

  • separate accounts

(1)

A domestic life insurance company may establish one or more separate accounts and may allocate thereto amounts, including without limitation proceeds applied under optional modes of settlement or under dividend options, to provide for life insurance or annuities and benefits incidental thereto, payable in fixed or variable amounts or both and may accumulate or hold funds paid pursuant to funding agreements or guaranteed investment contracts, subject to the following:

(a)

The income, gains, and losses, realized or unrealized, from assets allocated to a separate account shall be credited to or charged against the account, without regard to other income, gains, or losses of the company.

(b)

Except as may be provided with respect to reserves for guaranteed benefits and funds referred to in paragraph (c) of this subsection (1), 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, and the investments in such separate account shall not be taken into account in applying the investment limitations otherwise applicable to the investments of the company.

(c)

Except with the approval of the commissioner and under such conditions as to investments and other matters as he may prescribe, which shall recognize the guaranteed nature of the benefits provided, reserves for benefits guaranteed as to dollar amount and duration and for funds guaranteed as to principal amount or stated rate of interest shall not be maintained in a separate account.

(d)

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, as provided under the terms of the contract or the rules or other written agreement applicable to such separate account; except that, unless otherwise approved by the commissioner, that portion, if any, of the assets of such separate account equal to the company’s reserve liability as provided in paragraph (c) of this subsection (1) shall be valued in accordance with the rules otherwise applicable to the company’s assets.

(e)

Amounts allocated to a separate account in the exercise of the power granted by this section shall be owned by the company, and the company shall not be, nor hold itself out to be, a trustee with respect to such amounts. To the extent provided under the applicable contracts, that portion of the assets of any such separate account which is equal to the reserves and other contract liabilities with respect to such account shall not be chargeable with liabilities arising out of any other business the company may conduct.

(f)

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 by a transfer of cash or by a transfer of securities having a readily determinable market value, if such transfer of securities is approved by the commissioner. The commissioner may approve other transfers among such accounts if, in his opinion, such transfers would not be inequitable.

(g)

To the extent such company deems it necessary to comply with any applicable federal or state laws, such company, with respect to any separate account, including without limitation any separate account which is a management investment company or a unit investment trust, may provide for persons having an interest therein appropriate voting and other rights and special procedures for the conduct of the business of such account, including without limitation special rights and procedures relating to investment policy, investment advisory services, selection of independent public accountants, and the selection of a committee, the members of which need not be otherwise affiliated with such company, to manage the business of such account.

Source: Section 10-7-402 — Investment contract funds - separate accounts, https://leg.­colorado.­gov/sites/default/files/images/olls/crs2023-title-10.­pdf (accessed Oct. 20, 2023).

10‑7‑101
Valuation of life policies
10‑7‑102
Life insurance policies - requirements
10‑7‑103
Life insurance policies - prohibition
10‑7‑104
Exceptions
10‑7‑105
Violation
10‑7‑105.5
Lapse of life insurance policy - notice - affidavit of mailing or electronic transmission - legislative declaration
10‑7‑106
Exclusive right of insured in proceeds
10‑7‑107
Nonforfeiture benefits - applicability
10‑7‑108
Regulating vouchers for disbursements
10‑7‑109
Suicide no defense for nonpayment
10‑7‑112
Interest payable on benefits or proceeds
10‑7‑113
Acceleration of benefits
10‑7‑114
Actuarial opinion of reserves - definition - rules
10‑7‑115
Insurable interest - 170 (c) organizations
10‑7‑116
Military sales - rules
10‑7‑201
Group life insurance
10‑7‑202
Policy provisions
10‑7‑203
Employer defined
10‑7‑204
Reciprocal provisions
10‑7‑205
Exemption from execution
10‑7‑206
Issuance and valuation of policies - annual statement
10‑7‑207
Assignment
10‑7‑301
Short title
10‑7‑301.5
Definitions
10‑7‑302
Compulsory policy provisions
10‑7‑303
Computation of cash surrender value
10‑7‑304
Computation of nonforfeiture benefit
10‑7‑305
Adjusted premiums
10‑7‑305.1
Adjusted premiums for new policies
10‑7‑305.2
Future premium determination - standards
10‑7‑306
Calculation of values - supplemental rules
10‑7‑306.1
Calculation of values - new policies
10‑7‑307
Exemptions
10‑7‑308
Waiver prohibited
10‑7‑309
Minimum standard of valuation - rules
10‑7‑309.5
Minimum standards of valuation for new policies - definition
10‑7‑310
Life and endowment reserves
10‑7‑310.5
Individual annuity and pure endowment reserves
10‑7‑311
Minimum aggregate reserves
10‑7‑312
Optional standards
10‑7‑313
Minimum reserves
10‑7‑313.1
Minimum reserves - exceptions
10‑7‑313.2
Minimum standards for other coverages including accident and health insurance contracts - rules
10‑7‑313.3
Valuation manual for policies issued on or after the operative date of the valuation manual - rules
10‑7‑313.4
Requirements of a principle-based valuation
10‑7‑313.6
Experience reporting for policies in force on or after the operative date of the valuation manual
10‑7‑313.8
Confidentiality - definitions
10‑7‑313.9
Single state exemption
10‑7‑314
Automatic premium loans
10‑7‑315
Operative date
10‑7‑316
Effect on existing policies
10‑7‑401
Sales not prohibited
10‑7‑402
Investment contract funds - separate accounts
10‑7‑403
Where benefits are payable in variable amounts
10‑7‑404
Authority to issue variable contracts
10‑7‑405
Construction
10‑7‑501
Short title
10‑7‑502
Exemptions
10‑7‑503
Compulsory contract provisions
10‑7‑504
Minimum nonforfeiture amounts - rules
10‑7‑505
Computation of annuity benefit
10‑7‑506
Computation of cash surrender benefit
10‑7‑507
Computation of paid-up annuity nonforfeiture benefit
10‑7‑508
Determination of maturity date
10‑7‑509
Calculations of values - supplemental rules
10‑7‑510
Effective date - applicability of part
10‑7‑511
Rule-making authority
10‑7‑601
Short title
10‑7‑602
Definitions
10‑7‑603
Licensing
10‑7‑604
Licensure - refusal to issue - suspension - revocation - refusal to renew
10‑7‑605
Forms approval
10‑7‑606
Annual reports
10‑7‑607
Examinations
10‑7‑608
Disclosures
10‑7‑609
General requirements
10‑7‑610
Limited purchase in incontestability period
10‑7‑611
Advertising - legislative intent
10‑7‑612
Fraudulent acts
10‑7‑613
Penalties
10‑7‑614
Unfair trade practices
10‑7‑615
Rules
10‑7‑616
No preemption - Colorado Securities Act - authority of division of securities
10‑7‑617
Application
10‑7‑618
Continuation of business
10‑7‑619
Viatical settlements cash fund - created
10‑7‑620
Severability
10‑7‑701
Short title
10‑7‑702
Definitions
10‑7‑703
Insurance on the life of another
10‑7‑704
Insurable interest
10‑7‑705
Insured’s own life
10‑7‑706
Reliance on statements
10‑7‑707
Consent of insured
10‑7‑708
Prohibited practices
10‑7‑709
Actions to recover death benefits
10‑7‑710
Legitimate insurance transactions
10‑7‑801
Short title
10‑7‑802
Definitions
10‑7‑803
Insurers - duty to compare names of insureds with death master file and to locate beneficiaries
Green check means up to date. Up to date

Current through Fall 2024

§ 10-7-402’s source at colorado​.gov