LD 1553
pg. 12
Page 11 of 25 An Act To Permit Special Purpose Reinsurance Vehicles Page 13 of 25
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LR 1915
Item 1

 
(3)__Furnish to the reinsurance vehicle, the
superintendent and the ceding insurer a statement of
all assets in the trust account referred to in
paragraph E reported at fair value upon its inception
and at intervals no less frequent than the end of each
calendar quarter;

 
(4)__Notify the reinsurance vehicle and the ceding
insurer within 10 days of any deposits to or
withdrawals from the trust account referred to in
paragraph E;

 
(5)__Upon written demand of the ceding insurer,
immediately take steps necessary to transfer absolutely
all right, title and interest in the assets held in the
trust account referred to in paragraph E to the ceding
insurer and deliver physical custody of the assets to
the ceding insurer; and

 
(6)__Allow no substitutions or withdrawals of assets
from the trust account referred to in paragraph E
except on written instructions from the ceding insurer.

 
I.__The trust agreement described in paragraph E must
provide that at least 30 days but not more than 45 days
before termination of the trust account written notification
of termination must be delivered by the 3rd party to the
ceding insurer.

 
J.__The trust agreement described in paragraph E may be made
subject to and governed by the laws of any state in addition
to the requirements for the trust as provided in this
subchapter as long as the state is disclosed in the plan of
operation filed with and approved by the superintendent.

 
K.__The trust agreement described in paragraph E must
prohibit invasion of the trust account referred to in
paragraph E for the purpose of paying compensation to or
reimbursing the expenses of the trustee.

 
L.__The trust agreement described in paragraph E must
provide that the trustee be liable for the trustee's own
negligence, willful misconduct or lack of good faith.

 
(1)__Notwithstanding the provisions of paragraph F, subparagraphs
(3) to (5) and paragraph M, subparagraph (5), when a trust
agreement described in paragraph E is established in conjunction
with a contract, then the trust agreement may provide that the
ceding insurer shall undertake to use and apply any amounts drawn
upon


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