§ 82.42. Establishment and administration.
(a) A domestic insurer issuing variable life insurance shall establish one or more separate accounts under section 406.2 of the act (40 P. S. § 506.2).
(b) If no law or other regulation provides for the custody of separate account assets and if the insurer is not the custodian of the separate account assets, contracts for custody of the assets shall be in writing and the Commissioner has authority to review and approve both the terms of the contract and the proposed custodian prior to the transfer of custody.
(c) The insurer may not, without the prior written approval of the Commissioner, employ in a material connection with the handling of separate account assets a person who:
(1) Within the last 10 years has been convicted of a felony or a misdemeanor arising out of the conduct of the person involving embezzlement, fraudulent conversion or misappropriation of funds or securities or involving violation of 18 U.S.C. § § 1341, 1342 or 1343.
(2) Within the last 10 years has been found by any state regulatory authority to have violated or has acknowledged violation of any state insurance law involving fraud, deceit or knowing misrepresentation; or
(3) Within the last 10 years has been found by Federal or State regulatory authorities to have violated or has acknowledged violation of Federal or State securities laws involving fraud, deceit or knowing misrepresentation.
(d) A person with access to the cash, securities or other assets of the separate account shall be under bond in an amount of not less than $100,000.
(e) The assets of the separate accounts shall be valued as often as variable benefits are determined but at least monthly.
Source The provisions of this § 82.42 adopted August 4, 1978, effective September 5, 1978, 8 Pa.B. 2171; amended April 28, 1989, effective April 29, 1989, 19 Pa.B. 1835; corrected June 30, 1989, effective retroactive to April 29, 1989, 19 Pa.B. 2754. Immediately preceding text appears at serial pages (137048) to (137049).
Cross References This section cited in 31 Pa. Code § 82.41 (relating to applicability).
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