Direct answer
Yes, separate account assets are generally segregated from the insurer’s general account, which provides a layer of protection from the insurer’s general creditors in the event of insolvency. However, the level of protection depends on specific state insurance laws and the contract structure.
State insurance department regulatory statutes regarding segregated asset accounts. For additional information about the regulatory framework governing insurance company operations, see the National Association of Insurance Commissioners‘ state insurance regulation database.
What this means for you
Yes, separate account assets are generally segregated from the insurer’s general account, which provides a layer of protection from the insurer’s general creditors in the event of insolvency. However, the level of protection depends on specific state insurance laws and the contract structure.
FARMER STOCKMAN
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