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[1] IRC §817(c). A “separate account” is a separate set of financial statements held by a life insurance company, maintained to report assets and liabilities for particular products that are separated from the insurer's general account. Detailed statutory financial statement data and disclosures regarding the products and assets captured in a separate account can be found in SSAP No. 56—Separate Accounts.
[2] PPLA carriers typically hold enough value upfront in the money market fund within the separate account to support the deductions for the anticipated contract charges over 12-month periods thereby necessitating a distribution from the SMA or IDF to contract policy charges only once per policy year.
[3] IRC §72(q)