KRS 304.7-240: Special investments of pension, retirement or profit -sharing plan, life

insurance, or annuity funds -- Specified separate accounts of insurer.

(1) The amounts allocated to each separate account established by the insurer in

connection with a pension , retirement or profit -sharing plan, life insurance or an

annuity pursuant to KRS 304.15 -390 together with accumulations thereon, may be

invested and reinvested in any class of investments which may be authorized in the

written contract or agreement withou t regard to any requirements or limitations

prescribed by this subtitle; except, that to the extent that the insurer's reserve

liability with regards to:

(a) Benefits guaranteed as to amount and duration; and

(b) Funds guaranteed as to principal amount or stated rate of interest, is

maintained in any separate account, a portion of the assets of such separate

account at least equal to such reserve liability shall be invested in accordance

with the applicable provisions of this subtitle.

The investments in s uch separate account or accounts shall not be taken into

account in applying the investment limitations applicable to other investments of

the insurer.

(2) On application by an insurer, the commissioner may approve different investment

limitations and rest rictions for specified separate accounts of the insurer. The

commissioner shall only approve the insurer's proposed limitations and restrictions

if he or she finds that the requested investment limitations and restrictions

adequately protect the interests of the insured protected by the separate account and

the solvency of the insurer.