§ 6657. Authorized contracts
(a) An SPFC may insure only the risks of a counter party. (b) An SPFC may not issue a contract for assumption of risk or indemnification of loss other than an SPFC contract. However, the SPFC may cede risks assumed through an SPFC contract to third party international reinsurers through the purchase of reinsurance or […]
§ 6658. Protected cells
(a) This section and section 6659 of this subchapter provide a basis for the creation and use of protected cells by an SPFC as a means of accessing alternative sources of capital, lowering formation and administrative expenses, and generally making insurance securitizations more efficient. (b) An SPFC may establish and maintain one or more protected […]
§ 6641. Intent
It is intended by the Legislature that the term “securitization transaction” must be construed broadly.
§ 6642. Securitization transaction
(a) Notwithstanding any other provision of law, to the extent set forth in the transaction documents relating to a securitization transaction, including a transaction entered into pursuant to subchapter II of this chapter: (1) Any property, assets or rights purported to be transferred, in whole or in part, in the securitization transaction are deemed to […]
§ 6651. Purpose
This subchapter provides for the creation of Special Purpose Financial Captives (SPFCs) exclusively to facilitate the securitization of one or more risks, as a means of accessing alternative sources of capital and achieving the benefits of securitization. SPFCs are created for the limited purpose of entering into an SPFC contract and insurance securitization transactions and […]
§ 6652. Definitions
For purposes of this subchapter, the following definitions apply in addition to the definitions set out in Subchapter I of this chapter: (a) “Contested case” means a proceeding in which the legal rights, duties, obligations, or privileges of a party are required by law to be determined by the Court after an opportunity for hearing. […]
§ 6653. Relation to other Title 22 provisions
(a) No provisions of title 22 other than those specifically referenced in this subchapter apply to an SPFC, and those provisions apply only as modified by this subchapter. If a conflict occurs between a provision of title 22 and a provision of this subchapter, the latter controls. (b) The SAM, by rule, regulation, or order, […]
§ 6614. Formation of protect celled insurance company; establishing protected cells
(a) One or more entities may form a protected cell insurance company under this chapter. (b) A protected cell insurance company formed or licensed under this chapter may establish and maintain one or more protected cells to insure risks of one or more participants, subject to the following conditions: (1) each protected cell must be […]
§ 6615. Participants in protected cell insurance companies
(a) An association, a corporation, a limited liability company, a partnership, a trust, or other business entity may be a participant in a protected cell insurance company formed or licensed pursuant to this chapter. (b) The owner may be a participant in a protected cell insurance company. (c) A participant need not be a shareholder […]
§ 6616. Terms and conditions for protected cell insurance companies; exception
In the case of a protected cell insurance company: (a) a protected cell need not be established solely for the purpose of effecting insurance securitizations, but may be established for the purpose of isolating the expenses and claims of a protected cell insurance company participant; and (b) the protected cell insurance company shall attribute all […]