§ 3222. Funding agreements. (a) Any insurer authorized to deliver or
issue for delivery annuity contracts in the state may deliver or issue
for delivery one or more funding agreements. The issuance or delivery of
such funding agreements shall not be deemed to be doing a kind of
business specifically authorized by section one thousand one hundred
thirteen of this chapter or engaging in any business authorized by
section one thousand seven hundred fourteen of this chapter.
Notwithstanding the definition of "insurance contract" in paragraph one
of subsection (a) of section one thousand one hundred one of this
chapter, the issuance or delivery of a funding agreement by an insurer
in this state shall constitute doing an insurance business herein.

(b) Such funding agreements may be issued to persons authorized by a
state or foreign country to engage in an insurance business or
subsidiaries of such persons. Such funding agreements may also be issued
to entities other than persons authorized to engage in an insurance
business (and subsidiaries of such persons) and to individuals for the
following purposes: (i) to fund benefits under any employee benefit plan
as defined in the federal Employee Retirement Income Security Act of
1974, 29 U.S.C. §§ 1001 et seq, maintained in the United States or in a
foreign country, (ii) to fund the activities of any organization exempt
from taxation under section five hundred one (c) of the Internal Revenue
Code or of any similar organization in any foreign country, (iii) to
fund any program of the government of the United States, the government
of any state, foreign country or political subdivision thereof, or any
agency or instrumentality thereof, (iv) to fund any agreement providing
for periodic payments in satisfaction of a claim or (v) to fund any
program of an institution which has assets in excess of twenty-five
million dollars.

(c) No amounts shall be guaranteed or credited under any such funding
agreement except upon reasonable assumptions as to investment income and
expenses and on a basis equitable to all holders of funding agreements
of a given class. Such funding agreements shall not provide for payments
to or by the insurer based on mortality or morbidity contingencies.

(d) Amounts paid to the insurer, and proceeds applied under optional
modes of settlement, under such funding agreements may be allocated by
the insurer to one or more separate accounts pursuant to section four
thousand two hundred forty of this chapter.

(e) (1) The superintendent may promulgate reasonable regulations
relating to (i) the standards to be followed in the approval of forms of
such funding agreements, (ii) the reserves to be maintained by insurers
issuing such funding agreements, (iii) the accounting and reporting of
funds credited under such funding agreements, (iv) the disclosure of
information to be given to holders and prospective holders of such
funding agreements, and (v) the qualification and compensation of
persons selling such funding agreements on behalf of insurers.

(2) Notwithstanding any other provision of law, the superintendent
shall have sole authority to regulate the issuance and sale of such
funding agreements, including the persons selling such funding
agreements on behalf of insurers.