Section 1 Short title
This Act may be cited as the “General Accounts Product Clarifications Act”.
General Accounts Product Clarifications Act
A BILL
To amend the Employee Retirement Income Security Act of 1974.
Sec. 2 Application of ERISA to insurance company general accounts and general account contracts
Section 3(21) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1002(21)) is amended—
in subparagraph (A), by striking “subparagraph (B)” and inserting “subparagraphs (B) and (C)”; and
by adding the following new subparagraph (C):
“(C) If any money or other property of an employee benefit plan is contributed to a general account policy (as defined in section 401(b)(2)(B)) offered by an insurer, such contribution shall not by itself cause such insurer to be deemed to be a fiduciary or a party in interest as those terms are defined in this title, except insofar as such insurer acts in connection with an employee benefit plan covering employees of the insurer. Nothing contained in this subparagraph shall limit the duties imposed on such insurer by any other law.”
Section 401 of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1101) is amended—
by amending subsection (b)(2) to read as follows:
“(2) In the case of a plan which contributes to a general account policy offered by an insurer, the assets of such plan shall be deemed to include the insurance promises and guarantees granted to the plan under such policy, subject to any reserved rights of the insurer, but shall not be deemed to include the general account policy, any contractual rights reserved to the insurer under such policy, or any other assets of the insurer. For purposes of this paragraph:
“(A) The term “insurer” means an insurance company, insurance service, or insurance organization, qualified to do business in a State.
“(B) The term “general account policy” means an insurance policy or contract offered by an insurer to the extent that such policy or contract allocates amounts to the insurer’s general account, including any surplus in a separate account but excluding any other portion of a separate account.”
by striking subsection (c).
Effective date— The amendments made by this section shall be given retroactive effect and shall apply effective as of the date that is six years prior to the date of enactment.