House Bill 798

AN ACT concerning

Life Insurers - Investments

FOR the purpose of authorizing a separate investment account and a segregated asset
account established by a life insurer to invest in any investments contractually
permitted for the account and specified in the plan of operations operation
issued to a qualified plan; providing that certain provisions of State insurance
laws do not apply to the investments contained in the separate investment
account or the segregated asset account under certain circumstances; providing
that the assets of a separate investment account may not be chargeable with
certain liabilities under certain circumstances; repealing certain provisions of
law that impose limitations on investments made by life insurers and on
investments of the assets of a segregated asset account; altering a certain
definition; and generally relating to investments by life insurers.

BY repealing and reenacting, with amendments,
Article - Insurance
Section 5-512 and 16-602
Annotated Code of Maryland
(1997 Volume and 1998 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article - Insurance

5-512.

[(a) In this section, "qualified plan" means a pension, retirement, or
profit-sharing plan or agreement that meets the requirements for qualification under
§ 401 or § 403 of the United States Internal Revenue Code or any corresponding
provisions of prior or subsequent federal revenue laws.]

(A) IN THIS SECTION, "QUALIFIED PLAN" MEANS A PENSION, RETIREMENT, OR
PROFIT-SHARING PLAN OR AGREEMENT THAT:

(1) MEETS THE REQUIREMENTS FOR QUALIFICATION UNDER § 401, § 403,
OR § 414 OF THE UNITED STATES INTERNAL REVENUE CODE OR ANY
CORRESPONDING PROVISIONS OF PRIOR OR SUBSEQUENT FEDERAL REVENUE LAWS;
AND

(2) IS AN ACCREDITED INVESTOR AS DEFINED IN REGULATION D OF THE
SECURITIES ACT OF 1933 OR ANY CORRESPONDING PROVISIONS OF PRIOR OR
SUBSEQUENT FEDERAL LAWS.

(b) (1) This section applies only to the establishment or operation of
separate investment accounts by life insurers for the funding of qualified plans.