IL HB0982

Amends Section 245.21 of the Illinois Insurance Code to permit domestic insurance companies, including fraternal benefit societies, to establish separate accounts for life, annuity, and accident and health insurance with fixed or variable benefits.

Allows income, gains, and losses from separate account assets to be credited or charged exclusively to that account without regard to other company income or losses.

Permits separate account investments to proceed without regard to standard investment requirements and limitations applicable to the company's general assets.

Prohibits reserves for guaranteed benefits and funds guaranteed as to principal or interest from being maintained in separate accounts without Director approval and prescribed conditions.

Requires separate account assets equal to company reserves and contract liabilities to be protected from liabilities arising from other company business, except when the separate account is subject to guarantees unless the contract specifies otherwise.

Takes effect upon becoming law.