In this chapter, the following terms have the meanings indicated. Terms Defined. “Funding agreement” means a contract described in Insurance Article, §16-113, Annotated Code of Maryland, whereby an insurer may accept and accumulate funds and make one or more payments at future dates in amounts that are not based on mortality or morbidity contingencies. “Separate account” means an account: That is segregated from, and maintained separately from, an insurer's general account; and To which amounts paid to a Maryland-domiciled insurer under a funding agreement are allocated, as authorized by Insurance Article, §16-113, Annotated Code of Maryland. A Maryland-domiciled insurer may not issue a funding agreement for which a separate account will be used unless prior to delivery or issuance for delivery in the State, the form of the contract and the plan of operation have been filed with and approved by the Commissioner. A Maryland-domiciled insurer shall include in its plan of operation for a funding agreement for which a separate account will be used a statement of investment policy for the separate account and any supplemental account, including: Requirements for diversification, maturity, type, and quality of assets; and As applicable, target duration for matching funding agreement liabilities or the degree to which the investment policy is likely to match the performance of an interest rate series or index on which the funding agreement is based. Application of Insurance Article, §5-511, Annotated Code of Maryland. Subject to §A(2) of this regulation, and Insurance Article, §16-113(d)(3), Annotated Code of Maryland, amounts allocated to a separate account and any resulting accumulations shall be invested and reinvested in accordance with the classes of investments, and the limitations on classes of investments, set forth in Insurance Article, §5-511, Annotated Code of Maryland. For the purpose of applying Insurance Article, §5-511, Annotated Code of Maryland, pursuant to §A(1) of this regulation, separate account assets shall be treated as admitted assets and be subject to the requirements and limitations of Insurance Article, §5-511, Annotated Code of Maryland, that apply to admitted assets. Notwithstanding §A of this regulation, amounts allocated to a separate account and any resulting accumulations are not subject to the requirements and limitations set forth in Insurance Article, §5-511, Annotated Code of Maryland if the insurer obtains: Prior approval from the Commissioner for the amounts not to be subject to the requirements and limitations set forth in Insurance Article, §5-511, Annotated Code of Maryland; and Written consent of the holder of the funding agreement to the terms of the investment policy for the separate account. Insurance Article, §16-113, Annotated Code of Maryland Effective date: June 19, 2006 (33:12 Md. R. 999)