LD 1553
pg. 6
Page 5 of 25 An Act To Permit Special Purpose Reinsurance Vehicles Page 7 of 25
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LR 1915
Item 1

 
E.__The source and form of the minimum capital to be
contributed to the special purpose reinsurance vehicle;

 
F.__Any persons with which the special purpose reinsurance
vehicle is or upon formation will be affiliated as defined
in section 222;

 
G.__The names and biographical affidavits of the proposed
members of the board of directors and principal officers of
the special purpose reinsurance vehicle pursuant to section
790 , setting forth their legal names, any names under which
they have conducted or are conducting their affairs and any
names of any person affiliated, as defined in section 222,
with any proposed director or officer, together with such
other biographical information as the superintendent may
request;

 
H.__A plan of operation, consisting of a description of the
contemplated insurance securitization, the special purpose
reinsurance vehicle contract and related transactions, which
must include:

 
(1)__Draft documentation or at the discretion of the
superintendent a written summary of all material
agreements that are planned in order to effectuate the
insurance securitization and the related contract,
including the names of the ceding insurers, the nature
of the risks being assumed and the maximum amounts,
purpose and nature and the interrelationships of the
various transactions required to effectuate the
insurance securitization;

 
(2)__The investment strategy of the special purpose
reinsurance vehicle and a representation that the
investment strategy complies with the investment
requirements set forth in this subchapter and that the
strategy includes investment practices or other
provisions to preserve asset values that facilitate
attainment of full funding during the term of the
insurance securitization with assets that can be
monetized in response to a triggering event without a
substantial loss in value;

 
(3)__A description of the method by which losses
covered by the contract that may develop after the
termination of the contract period are to be addressed
under the provisions of the contract; and

 
(4)__A representation that the trust agreement under section 784,
subsection 2, paragraph E and the trusts


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