WILLIAM DONALD SCHAEFER, Governor                    Ch. 565

(C)  (1) AN AMOUNT MAY NOT BE GUARANTEED OR CREDITED UNDER A
FUNDING AGREEMENT EXCEPT UPON REASONABLE ASSUMPTION AS TO:

(I)  INVESTMENT INCOME AND EXPENSES; AND

(II)  ON A BASIS EQUITABLE TO ALL HOLDERS OF
FUNDING AGREEMENTS OF A GIVEN CLASS.

(2) A FUNDING AGREEMENT MAY NOT PROVIDE FOR PAYMENT
TO, OR BY, THE INSURER BASED ON MORTALITY OR MORBIDITY
CONTINGENCY.

(D) (1) AMOUNTS PAID TO THE INSURER, AND PROCEEDS APPLIED
UNDER OPTIONAL MODES OF SETTLEMENT, UNDER A FUNDING AGREEMENT MAY
BE ALLOCATED BY THE INSURER TO THE INSURER'S GENERAL ACCOUNT OR
TO ONE OR MORE SEPARATE ACCOUNTS UNDER §§ 96A AND 362 OF THIS
ARTICLE.

(2) NOTWITHSTANDING THE PROVISIONS OR LIMITATIONS OF
§§ 96A AND 362 OF THIS ARTICLE, A SEPARATE ACCOUNT FOR FUNDING
AGREEMENT PROCEEDS MAY INCLUDE FUNDS FROM A SOURCE AUTHORIZED
UNDER THIS SECTION TO PURCHASE A FUNDING AGREEMENT, PROVIDING FOR
PAYMENT IN FIXED OR VARIABLE AMOUNTS.

(3) AMOUNTS ALLOCATED TO A SEPARATE ACCOUNT MAY BE
INVESTED AND REINVESTED WITHOUT REGARD TO ANY REQUIREMENT OR
LIMITATION PRESCRIBED BY THE LAWS OF THIS STATE GOVERNING THE
INVESTMENTS OF LIFE INSURANCE COMPANIES.

(D) (1) UNDER A FUNDING AGREEMENT, AMOUNTS PAID TO THE
INSURER AND PROCEEDS APPLIED UNDER OPTIONAL MODES OF SETTLEMENT
MAY BE ALLOCATED BY THE INSURER TO THE INSURER'S GENERAL ACCOUNT
OR TO ONE OR MORE SEPARATE ACCOUNTS.

(2) AMOUNTS ALLOCATED TO THE INSURER'S GENERAL
ACCOUNT AND ANY RESULTING ACCUMULATIONS SHALL BE INVESTED AND
REINVESTED IN ACCORDANCE WITH THE PROVISIONS OF ARTICLE 48A OF
THE CODE GOVERNING INVESTMENT OF LIFE INSURANCE COMPANY RESERVES.

(3) AMOUNTS ALLOCATED TO ANY SEPARATE ACCOUNT AND
RESULTING ACCUMULATIONS MAY BE INVESTED AND REINVESTED SUBJECT
ONLY TO THE PROVISIONS OF ARTICLE 48A, §§ 91, 92, AND 96A (C),
(F), (H), (I), AND (J) OF THE CODE AND REGULATIONS ADOPTED
PURSUANT TO SUBSECTION (E) OF THIS SECTION.

(E)  (1) THE COMMISSIONER MAY ADOPT REGULATIONS RELATING TO:

(I)  THE STANDARDS TO BE FOLLOWED IN THE
APPROVAL OF FORMS OF FUNDING AGREEMENTS;

(II)  THE RESERVES TO BE MAINTAINED BY INSURERS
ISSUING FUNDING AGREEMENTS;

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