§ 6674. Standards and criteria applicable in contested case brought by third party and certain actions by the SAM; asset protection
(a) A contested case brought by a third party based on a decision of the SAM pursuant to this subchapter is governed by applicable law of the Territory except that the third party shall: (1) prove its case by a clear and convincing evidence standard; (2) demonstrate irreparable harm to the SPFC or its counterparty, […]
§ 6675. Promulgation of regulations
The SAM may, in accordance with Title 3, Chapter 35, Virgin Islands Code, promulgate regulations necessary to effectuate the purposes of this subchapter. Regulations promulgated pursuant to this section do not affect an SPFC insurance securitization in effect at the time of the promulgation.
§ 6664. Requirements and guidelines for asset management
In fulfilling its function, the SPFC must adhere to the following requirements and, to the extent of its powers, must ensure that contracts obligating other parties to perform certain functions incident to its operations are substantively and materially consistent with the following requirements and guidelines: (a) The assets of an SPFC must be preserved and […]
§ 6665. Trust agreements for assets held in trust or pledged to secure obligations
(a) Assets of the SPFC held in trust to secure obligations under the SPFC contract must at all times be held in: (1) cash and cash equivalents; (2) securities listed by the Securities Valuation Office of the NAIC and qualifying as admitted assets under statutory accounting convention in its state, territory of domicile; or (3) […]
§ 6666. Payment of dividends
(a) An SPFC may not declare or pay dividends in any form to its owners other than in accordance with the insurance securitization transaction agreements, and in no extent may the dividends decrease the capital of the SPFC below two hundred fifty thousand dollars, and, after giving effect to the dividends, the assets of the […]
§ 6667. Material changes of SPFC’S plan; filing of audit and statement of operations; examination of records
(a) Any material change of the SPFC’s plan of operation pursuant to the section 6654 of this suchapter, whether or not through an SPFC protected cell, requires prior approval of the SAM, provided however: (1) if initially approved in the plan of operation, securities subsequently issued to continue the securitization activities of the SPFC either […]
§ 6668. Examinations by the SAM; confidentiality of examination reports
(a) At least once every three years, and if the SAM determines it to be prudent, the SAM, or his designee, shall visit each SPFC and thoroughly inspect and examine its affairs to ascertain its financial condition, its ability to fulfill its obligations, and whether it has complied with this subchapter. The SAM upon application, […]
§ 6669. Expiration of authority granted by the SAM on cessation of business; suspension or revocation of license; penalties; administrative hearing
(a) At the cessation of business of an SPFC following termination or cancellation of an SPFC contract and the redemption of any related securities issued in connection with them, the authority granted by the SAM expires or, in the case of retiring and surviving protected cells, be modified, and the SPFC is no longer authorized […]
§ 6670. Tax rates and payment schedules
(a) An SPFC shall pay to the SAM by April 15 of each year, a tax at the rate of four tenths of one percent on the first $20,000,000 and three tenths of one percent on each dollar after the first $20,000,000, subject to a minimum annual tax of $5,000 and a maximum annual tax […]
§ 6671. Conditions for SPFC contract being granted credit for reinsurance treatment or otherwise qualifying as asset or reduction from liability for benefit of counterparty
An SPFC contract meeting the provisions of this subchapter must be granted credit for reinsurance treatment or otherwise qualifies as an asset or a reduction from liability for reinsurance ceded by a domestic insurer to an SPFC as an assuming insurer for the benefit of the counterparty, provided and only to the extent: (a) of […]