(a) Reserves for contracts funded by a separate account subject to this Part shall be an amount equal to the sum of the following:

1. (1) the total of the market-value of separate account assets plus the general account assets required to be maintained on the valuation date under section 97.5(b) and (c) of this Part; and
2. (2) the excess, if any, of the market-value of separate account assets (to the extent that the market value of such assets determines the contractholder's benefits, i.e., to the extent such assets are beneficially client assets) over the amount determined in accordance with paragraph (1) of this subdivision; and
3. (3) any additional amount determined by the insurer's qualified actuary as necessary to make good and sufficient provision for all of the contract liabilities; and
4. (4) any additional amount determined as necessary by the superintendent due to the nature of the benefits.

(b) The amount of any reserves required by paragraph (a)(3) of this section may be established by either:

1. (1) allocating sufficient assets to the separate account or a supplemental account to satisfy such requirement; or
2. (2) setting up the additional reserves in the general account.