Volume 74 · 218
Public Law 86–520
To amend the Life Insurance Act of the District of Columbia approved June 19, 1934, as amended.
Approved June 12, 1960
Statutory text
AN ACT
To amend the Life Insurance Act of the District of Columbia approved June 19, 1934, as amended.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
That chapter III of the Life Insurance Act, as amended (sec. 35–501, et seq., D.C. Code,
1951 edition), is amended by adding a new section 41 as follows:
“Sec. 41.
(a) Every domestic life insurance company which issues contracts providing for payments which vary directly according to investment experience shall establish one or more separate accounts in connection with such contracts, as directed by the superintendent. All amounts received by the company which are required by contract to be applied to provide such variable payments shall be added to the appropriate separate account, and the assets of any such separate account shall not be chargeable with liabilities arising out of any other business the company may conduct. Any surplus or deficit which may arise in any such separate account by virtue of mortality experience shall be adjusted by withdrawals from or additions to such account so that the assets of such account shall always equal the assets required to satisfy the company’s obligations for such variable payments.
“(b) A foreign or alien life insurance company authorized to do business in the District may be authorized to issue or deliver contracts in the District providing for payments which vary directly according to investment experience only if authorized to issue such contracts under the laws of its domicile.
“(c) No domestic life insurance company shall be authorized to issue such variable contracts, and no foreign or alien life insurance company shall be authorized to issue or deliver such contracts in the District, until such company has satisfied the Superintendent that its condition and methods of operation in connection with the issuance of such variable contracts will not be such as to render its operation hazardous to the public or to its policy holders in the District. In determining the qualification of a company to issue or deliver such variable contracts in the District, the Superintendent shall consider, among other things, the history and financial condition of the company; the character, responsibility, and general fitness of the officers and directors of the company; and, in the case of a foreign or alien company, whether the regulation provided by the laws of its domicile provides a degree of protection to policyholders and the public substantially equal to that provided by this section and the rules and regulations issued by the Superintendent pursuant thereto.
“(d) Every life insurance company which issues or delivers such variable contracts in the District shall file with the Superintendent, in addition to the annual statement required by section 8 of the Act of June 19, 1934 (48 Stat. 1132; sec. 35–407, D.C. Code, 1951 edition), such other periodic or special reports as the Superintendent may prescribe.
“(e) The provisions of this section shall not apply to any contracts which do not provide for payments which vary directly according to investment experience.
“(f) The Superintendent shall have the authority to issue such reasonable rules and regulations as may be necessary to carry out the purposes of this section.
“(g) In the case of a domestic life insurance company which issues contracts providing for payments which vary directly according to investment experience—
“(1) the 2 per centum limitation of clause (1) of subsection (7) of section 35 of chapter III of the Life Insurance Act, as amended (sec. 35–535, D.C. Code, 1951 edition), shall be enlarged
to include an additional 2 per centum of the assets held by such company in the separate account or accounts established pursuant to subsection (a) of this section.
“(2) the 1 per centum limitation of subsection (9) of said section 35 shall be enlarged to include an additional 2 per centum of the assets held by such company in the separate account or accounts established pursuant to subsection (a) of this section.
“(3) the 1 per centum limitation of subsection (10) of said section 35 shall be enlarged to include an additional 2 per centum of the assets held by such company in the separate account or accounts established pursuant to subsection (a) of this section.” Approved June 12, 1960.