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The Vermont Statutes Online



Title

08

:
Banking and Insurance






Chapter

141

:
CAPTIVE INSURANCE COMPANIES






Subchapter

004
:
SPECIAL PURPOSE FINANCIAL INSURANCE COMPANIES










 

§

6048j. Disposition of assets; investments

(a) The assets

of a special purpose financial insurance company shall be preserved and

administered by or on behalf of the special purpose financial insurance company

to satisfy the liabilities and obligations of the special purpose financial

insurance company incident to the reinsurance contract, the insurance

securitization, and other related agreements.

(b) In the

special purpose financial insurance company securitization, the security

offering memorandum or other document issued to prospective investors regarding

the offer and sale of a surplus note or other security shall include a

disclosure that all or part of the proceeds of such insurance securitization

will be used to fund the special purpose financial insurance company's

obligations to the ceding insurer.

(c) A special

purpose financial insurance company shall not be subject to any restriction on

investments other than the following:

(1) a special

purpose financial insurance company shall not make a loan to any person other

than as permitted under its plan of operation or as otherwise approved in

advance by the Commissioner; and

(2) the

Commissioner may prohibit or limit any investment that threatens the solvency

or liquidity of the special purpose financial insurance company unless the

investment is otherwise approved in its plan of operation or in an order issued

to the special purpose financial insurance company pursuant to subsection

6048d(b) of this chapter, as either is amended from time to time. (Added 2007,

No. 49, § 17; amended 2013, No. 29, § 61, eff. May 13, 2013.)