§ 23-63-1701. Short title
This subchapter may be cited as the “Protected Cell Company Act”.
§ 23-63-1702. Purpose
This subchapter provides: (1) A basis for the creation of protected cells by a domestic insurer as one means of accessing alternative sources of capital and achieving the benefits of insurance securitization; (2) Funds to investors in fully funded insurance securitization transactions that are available to pay the insurer’s insurance obligations or to repay the […]
§ 23-63-1703. Definitions
For the purposes of this subchapter: (1) “Domestic insurer” means an insurer domiciled in the State of Arkansas; (2) “Fully funded” means that, with respect to any exposure attributed to a protected cell, the fair value of the protected cell assets on the date on which the insurance securitization is effected equals or exceeds the […]
§ 23-63-1704. Establishment of protected cells
(a) (1) A protected cell company may establish one (1) or more protected cells by submitting a plan of operation, or amendments to a plan, with respect to each protected cell in connection with an insurance securitization to the Insurance Commissioner for prior written approval. (2) The plan shall include, but not be limited to: […]
§ 23-63-1705. Use and operation of protected cells
(a) (1) The protected cell assets of a protected cell may not be charged with liabilities arising out of any other business the protected cell company may conduct. (2) All contracts or other documentation reflecting protected cell liabilities shall clearly indicate that only the protected cell assets are available for the satisfaction of those protected […]
§ 23-63-1706. Reach of creditors and other claimants
(a) (1) (A) Protected cell assets shall be available only to the creditors of the protected cell company that are creditors to that protected cell. (B) Those creditors shall be entitled to have recourse to the protected cell assets attributable to that protected cell and shall be absolutely protected from the creditors of the protected […]
§ 23-63-1707. Conservation, rehabilitation, or liquidation of protected cell companies
(a) Notwithstanding any provision of the Arkansas Insurance Code or any rule promulgated under the Arkansas Insurance Code or any other applicable law or rule, upon any order of conservation, rehabilitation, or liquidation of a protected cell company, the receiver shall be bound to deal with the protected cell company’s assets and liabilities, including protected […]
§ 23-63-1708. No transaction of an insurance business
(a) A protected cell company insurance securitization shall not be deemed to be an insurance or reinsurance contract. (b) An investor in a protected cell company insurance securitization shall not be deemed, by sole means of this investment, to be transacting insurance business in this state. (c) The underwriters or selling agents and their partners, […]
§ 23-63-1709. Authority to adopt rules
The Insurance Commissioner may promulgate rules necessary to carry out the purpose and intent of this subchapter.