Asset maintenance requirements for market value separate accounts supporting index contracts

contracts (a) An insurance company shall hold sufficient assets as a reserve in the general account, the separate account, or supplemental accounts, as appropriate, such that the market value of the assets held in the separate account, plus the market value of any supplemental account, plus any assets held in the general account as a reserve for guaranteed contract liabilities (valued in accordance with section 38a-78 of the Connecticut General Statutes), less any deduction provided for in subsection (b) of this section, equals or exceeds the value of guaranteed contract liabilities determined in the manner set forth in the plan of operations. (b) In determining compliance with the asset maintenance requirement and the reserves for guaranteed contract liabilities, the insurance company shall deduct a percentage of the market value of a separate account or supplemental account asset as set forth in the plan of operations, and for replication (synthetic asset) transactions, the value of the separate account or supplemental account assets shall be decreased in the manner set forth in the plan of operations. (c) All or a portion of the amount needed to comply with the asset maintenance requirement may be allocated to one or more supplemental accounts. If the account contract or applicable law provides that the assets in the separate account shall not be charged with liabilities arising out of any other business of the insurance company, the insurance company shall maintain in a supplemental account or the general account the amount of any account assets in excess of the sum of the amounts contributed (net of withdrawals) by the contract holder and the earnings attributable to the amounts contributed (net of withdrawals) by the contract holder.