Long-term business fund

(1) Payments from the long-term business fund shall not be made directly or indirectly for any purpose other than those of the insurer’s long-term business, except insofar as such payments may be made out of any surplus certified by an auditor to be distributable otherwise than to a policy holder. (2) Every such insurer carrying on long-term business may establish any number of separate accounts in respect of respective premiums paid to it to provide– (a) annuities on human life; and (b) contracts of insurance on human life, and such respective premiums shall be kept segregated one from the other and independent of all other funds of the insurer, and notwithstanding the provisions of any other law to the contrary, shall not be chargeable with any liability arising from any other business of the insurer. (3) A contract for an annuity or insurance on human life may provide that– (a) the benefit and obligations of the said contract may be assigned, in whole or in part, to a third party; and (b) premiums therefor are payable in cash, securities, promissory notes, bonds, 24 debentures, real or personal property or any other asset or thing of value acceptable to the Transfer of long- term business.