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Separate Account GIC

A stable value investment contract that is first supported by associated assets in a segregated separate account held by the issuing insurance company and then, to the extent necessary, by the insurer’s general account assets and surplus. The crediting rate on a separate account GIC resets periodically based upon the earnings of the separate account assets. The securities held in the separate account are owned by the insurance company, but are held for the exclusive benefit of the plan or plans participating in the separate account. If the investment contract stipulates, in the event that the insurance company becomes insolvent the separate account assets may not be used to satisfy any of the insurer's other liabilities. (See also guaranteed insurance account.)