Okla. Stat. tit. 36, § 36-6061

contracts - Regulations.

A. Any domestic life insurance company may establish one or

more separate accounts, and may allocate to such separate account or

accounts any amounts including without limitation proceeds applied

under optional modes of settlement or under dividend options to

provide for life insurance or annuities and benefits incidental

thereto, payable in fixed or in variable dollar amounts, or in both,

subject to the following:

1. Except as hereinafter provided, the amounts allocated to

each such account and accumulations thereon may be invested and

reinvested without regard to any requirements or limitations

prescribed by the laws of this state governing the investments of

life insurance companies; provided, that to the extent that the

company's reserve liability with regard to a. benefits guaranteed as

to amounts and duration, and b. funds guaranteed as to principal

amount or stated rate of interest is maintained in any separate

account, a portion of the assets of such separate account at least

equal to such reserve liability shall be, except as the Commissioner

may otherwise approve, invested in accordance with the laws of this

state governing the investments of life insurance companies. The

investments in such separate account or accounts shall not be taken

into account in applying the investment limitations applicable to

other investments of the company.

2. With respect to seventy-five percent (75%) of the market

value of the total assets in a separate account no company shall

purchase or otherwise acquire the securities of any issuer, other

than securities issued or guaranteed as to principal or interest by

the United States, if immediately after such purchase or acquisition

the market value of such investment, together with prior investments

of such separate account in such security taken at market value,

would exceed ten percent (10%) of the market value of the assets of

said separate account; provided, however, that the Commissioner may

waive such limitations if, in his opinion, such waiver will not

render the operation of such separate account hazardous to the

public or the policyholders in this state.

3. No separate account shall invest in the voting securities of

a single issuer if such investment would result in the company

owning an amount in excess of ten percent (10%) of the total issued

and outstanding voting securities of such issuer; provided, that the

foregoing shall not apply with respect to securities held in

Oklahoma Statutes - Title 36. Insurance Page 1124

separate accounts, the voting rights in which are exercisable only

in accordance with instructions from persons having interest in such

accounts.

4. The limitations provided in subsections 2. and 3. above

shall not apply to the investment with respect to a separate account

in the securities of an investment company registered under the

Investment Company Act of 1940, provided that the investments of

such investment company comply in substance with subsections 2. and

3. hereof.

5. The income, if any, and gains and losses, realized or

unrealized, from assets allocated to each account shall be credited

to or charged against the account in accordance with the applicable

contract without regard to other income, gains or losses of the

company.

6. Assets allocated to a separate account shall be valued at

their market value on the date of valuation, or if there is no

readily available market, then in accordance with the applicable

contract or the rules or other written agreement applicable to such

separate account; provided, the portion of the assets of such

separate account at least equal to the company's reserve liability

with regard to the guaranteed benefits and funds referred to in

subsection 1. hereof, if any, shall be valued in accordance with the

rules otherwise applicable to the company's assets. The reserve

liability for variable contracts shall be determined in accordance
h

separate account; provided, the portion of the assets of such

separate account at least equal to the company's reserve liability

with regard to the guaranteed benefits and funds referred to in

subsection 1. hereof, if any, shall be valued in accordance with the

rules otherwise applicable to the company's assets. The reserve

liability for variable contracts shall be determined in accordance

with actuarial procedures that recognize the variable nature of the

benefits provided and any mortality guarantees.

7. If, and to the extent, so provided under the applicable

contracts, that portion of the assets of any such separate account

equal to the reserves, and other contract liabilities with respect

to such account, shall not be chargeable with liabilities arising

out of any other business the company may conduct.

8. The life insurance company shall have the power and the

company's charter shall be deemed amended to authorize such company

to do all things necessary under any applicable state or federal law

in order that variable contracts may be lawfully sold or offered for

sale including, without limitation, a. with respect to any separate

account registered with the Securities and Exchange Commission as a

unit investment trust exercise voting rights in connection with any

securities of a regulated investment company registered under the

Investment Company Act of 1940 and held in such separate accounts in

accordance with instructions from persons having interests in such

accounts ratably as determined by the company, or b. with respect

to any separate account registered with the Securities and Exchange

Commission as a management investment company, establish for such

account a committee, board, or other body, the members of which may

or may not be otherwise affiliated with such company and may be

elected to such membership by the vote of persons having interests

Oklahoma Statutes - Title 36. Insurance Page 1125

in such account ratably as determined by the company. Such

committee, board or other body may have the power, exercisable alone

or in conjunction with others, to manage such separate account and

the investment of its assets.

B. Any contract providing benefits payable in variable amounts

delivered or issued for delivery in this state shall contain a

statement of the essential features of the procedure to be followed

by the company in determining the dollar amount of such variable

benefits. Any such contract under which the benefits vary to

reflect investment experience, including a group contract and any

certificate issued thereunder shall state that such dollar amount

may decrease or increase and shall contain on its first page a

statement that the benefits thereunder are on a variable basis.

C. No domestic life insurance company, and no other life

insurance company admitted to transact business in this state, shall

be authorized to deliver within this state any variable contract

providing benefits in variable amounts until said company has

satisfied the Insurance Commissioner that its condition or methods

of operation in connection with the issuance of such contracts will

not render its operation hazardous to the public or its

policyholders in this state. In determining the qualification of a

company requesting authority to deliver such contracts within this

state, the Insurance Commissioner shall consider, among other

things:

1. The history and financial condition of the company;

2. The character, responsibility and general fitness of the

officers and directors of the company; and

3. In the case of a company other than a domestic company,

whether the statutes and regulations of the jurisdiction of its

incorporation, or state of entry in the case of an alien company,

provide a degree of protection to policyholders and the public which

is substantially equal to that provided by this section and the

rules and regulations issued thereunder.
d directors of the company; and

3. In the case of a company other than a domestic company,

whether the statutes and regulations of the jurisdiction of its

incorporation, or state of entry in the case of an alien company,

provide a degree of protection to policyholders and the public which

is substantially equal to that provided by this section and the

rules and regulations issued thereunder.

An authorized life insurance company, whether domestic, foreign

or alien, which issues variable contracts and which is a subsidiary

of (or affiliated through common management or ownership with)

another life insurance company authorized to do business in this

state may be deemed to have met the provisions of this subsection if

either it or the parent or affiliated company meets the requirements

hereof.

D. The Insurance Commissioner shall have the sole and exclusive

authority to regulate the issuance and sale of such contracts and to

issue such reasonable rules and regulations as may be necessary to

carry out the purposes and provisions of this section; and such

contracts, the companies which issue them and the agents or other

persons who sell them shall not be subject to the Oklahoma Uniform

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Securities Act of 2004 nor to the jurisdiction of the Oklahoma

Securities Commission thereunder.