CHAPTER 149

An Act to amend the Code of Virginia by adding thereto a section num-
bered 38.1-188.1, relating to the establishment by an insurer of
separate accounts and the investment of funds allocated to such

accounts.
[H 469]
Approved March 2, 1964

Be it enacted by the General Assembly of Virginia:

1. That the Code of Virginia be amended by adding thereto a section
numbered 38.1-183.1 as follows:

§ 38.1-183.1. Any such insurer may, after adoption of a resolution by
its board of directors and certification thereof to the Commission, allocate
to one or more separate accounts, in accordance with the terms of a
written agreement, any amounts which are paid to such insurer in con-
nection with a pension, retirement or profit-sharing plan, and which are
to be applied to purchase retirement benefits under such insurer’s policies
or contracts and to provide other benefits incidental thereto. The income,
if any, and gains or losses, realized or unrealized, on each such account
shall be credited to or charged against the amount allocated to such
account in accordance with such agreement, without regard to the other
income, gains or losses of the insurer. Notwithstanding any inconsistent
provision in this title, the amounts allocated to such accounts and accu-
mulations thereon may be invested and reinvested in any class of loans
and investments specified in such agreement other than those prohibited
by § 38.1-187. Amounts allocated by an insurer to separate accounts in
the exercise of the power granted by this section shall be owned by the
insurer, and the insurer shall not be, or hold itself out to be, a trustee in
respect to such amounts. The insurer’s liability under any separate account
shall be limited to the amount or funds in such separate account. The
provisions of this section shall not apply to amounts contributed by a
person who is entitled to retirement or other incidental benefits under such
a pension, retirement or profit-sharing plan nor to any amounts which
have been applied to the purchase of retirement or other incidental
benefits under the policies or contracts of such insurer.