31A-37a-303 - Disposition of assets -- Investments.
31A-37a-303. Disposition of assets -- Investments.
(1) A special purpose financial captive insurance company or a person on its behalf shallpreserve and administer an asset of the special purpose financial captive insurance company tosatisfy the liabilities and obligations of the special purpose financial captive insurance companyincident to:
(a) the reinsurance contract;
(b) an insurance securitization; and
(c) an agreement related to Subsection (1)(a) or (b).
(2) In a special purpose financial captive insurance company insurance securitization, asecurity offering memorandum or other document issued to a prospective investor regarding theoffer and sale of a surplus note or other security shall include a disclosure that all or part of theproceeds of the insurance securitization will be used to fund the special purpose financial captiveinsurance company's obligations to the ceding insurer.
(3) A special purpose financial captive insurance company is not subject to a restrictionon investments other than the following:
(a) A special purpose financial captive insurance company may not make a loan to aperson other than:
(i) as permitted under its plan of operation; or
(ii) as otherwise approved in advance of the loan by the commissioner.
(b) The commissioner may prohibit or limit an investment that threatens the solvency orliquidity of a special purpose financial captive insurance company unless the investment isotherwise approved in:
(i) the special purpose financial captive insurance company's plan of operation; or
(ii) an order issued to the special purpose financial captive insurance company pursuantto Section 31A-37a-201.
Enacted by Chapter 302, 2008 General Session