Ch. 36

1995 LAWS OF MARYLAND

(D)     CREDITING OR CHARGING INCOME AND GAINS AND LOSSES.

ANY INCOME AND GAINS AND LOSSES, REALIZED OR UNREALIZED, ON EACH
INVESTMENT ACCOUNT SHALL BE CREDITED TO OR CHARGED AGAINST THE
AMOUNTS ALLOCATED TO THE ACCOUNT IN ACCORDANCE WITH THE AGREEMENT
WITHOUT REGARD TO OTHER INCOME, GAINS, OR LOSSES OF THE LIFE INSURER.

(E)     AUTHORIZED INVESTMENTS; LIMITATION ON AMOUNT.

(1)      AMOUNTS ALLOCATED TO SEPARATE INVESTMENT ACCOUNTS AND
ACCUMULATIONS ON THE ACCOUNTS MAY BE INVESTED AND REINVESTED IN ANY
CLASS OF INVESTMENTS AUTHORIZED UNDER THIS ARTICLE AS LIFE INSURANCE
RESERVE INVESTMENTS.

(2)      PREFERRED AND COMMON STOCK INVESTMENTS OF AMOUNTS
ALLOCATED TO SEPARATE INVESTMENT ACCOUNTS MAY NOT BE INCLUDED IN
APPLYING THE 10% LIMITATIONS ON INVESTMENTS UNDER § 5-511(F) OF THIS
SUBTITLE.

(3) A LIFE INSURER MAY NOT INVEST MORE THAN THE GREATER OF
$10,000 OR 10% OF ANY ONE SEPARATE INVESTMENT ACCOUNT IN THE STOCK OR
SHARES OF ANY ONE CORPORATION, MUTUAL FUND, OR INVESTMENT COMPANY...

(F)      GUARANTEES.                                                                                           

UNLESS A LIFE INSURER LIMITS ITS LIABILITY UNDER THE GUARANTEE TO
THE INTEREST OF THE CONTRACT HOLDER IN THE INVESTMENTS, A LIFE INSURER
MAY NOT GUARANTEE:

(1)      THE VALUE OF AMOUNTS ALLOCATED TO A SEPARATE INVESTMENT
ACCOUNT; OR

(2)      THE VALUE OF INVESTMENTS OF THE AMOUNTS ALLOCATED TO
THE SEPARATE INVESTMENT ACCOUNT OR THE INCOME FROM THE INVESTMENTS.

(G)     AMOUNTS ALLOCATED.

(1)      A LIFE INSURER OWNS THE AMOUNTS THAT THE LIFE INSURER
ALLOCATES TO A SEPARATE INVESTMENT ACCOUNT UNDER THIS SECTION.

(2)      A LIFE INSURER MAY NOT BE OR HOLD ITSELF OUT TO BE A
TRUSTEE OF THE AMOUNTS ALLOCATED TO THE SEPARATE INVESTMENT ACCOUNT.

(H) INVESTMENTS AND LIABILITIES OF EACH ACCOUNT TO BE
DISTINGUISHABLE.

AT ALL TIMES, THE INVESTMENTS AND LIABILITIES OF EACH SEPARATE
INVESTMENT ACCOUNT SHALL BE CLEARLY IDENTIFIABLE AND DISTINGUISHABLE
ON THE BOOKS OF THE LIFE INSURER FROM OTHER INVESTMENTS AND LIABILITIES
OF THE LIFE INSURER.                                                                                               

(I) APPROVAL OF TRANSFER OF INVESTMENT.

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