Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:

SECTION 1. Section 132G of chapter 175 of the General Laws, as appearing in the 2002 Official Edition, is hereby amended by inserting after the word "contracts", in line 15, the following words:- or in connection with contracts payable in whole or in part in fixed amounts or variable amounts, or a combination thereof, or for which the accumulation in whole or in part is guaranteed as to principal amount or stated rate of interest.

SECTION 2. The second paragraph of said section 132G of said chapter 175, as so appearing, is hereby further amended by striking out the second sentence and inserting in place thereof the following 2 sentences:- All amounts received by the life company which are required by a contract on a variable basis to be applied to provide variable benefits, payments or values thereunder shall be placed in the appropriate separate account or accounts. If, and to the extent so provided under the applicable, variable, fixed or guaranteed contracts, that portion of the assets of the separate account equal to the reserves and other contract liabilities with respect to the account shall not be chargeable with liabilities arising out of any other business the life company may conduct.