379.1361. Plan of operation to be filed, contents.

Plan of operation to be filed, contents.

379.1361. A SPLRC must file, as part of its application, a plan ofoperation to consist of a description of the contemplated financingtransaction or transactions and a detailed description of transactiondocuments to which the SPLRC will be a party, including, but not limitedto, the SPLRC contract and related transactions to which the SPLRC will bea party which must include:

(1) Draft documentation or, at the director's discretion, a writtensummary of all material agreements to which the SPLRC is to be a party thatare to be entered into to effectuate the SPLRC contract and the financingtransaction;

(2) The purpose of the transaction;

(3) Maximum amounts;

(4) Interrelationships of the various transactions, to which theSPLRC will be a party, required to effectuate the financing;

(5) Investment strategy for the SPLRC;

(6) Description of the underwriting, reporting and claims paymentmethods by which losses covered by the SPLRC contract will be reported,accounted for and settled;

(7) Initial minimum capital to be held by the SPLRC;

(8) Pro forma balance sheet and income statements illustrating theperformance of the SPLRC, the SPLRC contract, and any ceded reinsuranceagreements under scenarios reasonably requested by the director orspecified by rule; and

(9) The pro forma balance sheets and income statements filed underthis section must be updated by the SPLRC and filed with the director inthe event of a material deviation from the original or most recently filedplan of operation. The plan of operation must specify which deviations areto be considered material.

(L. 2007 S.B. 215)