(3)__The assets are administered in the manner and pursuant to arrangements under subchapter 6;

(4)__The assets are held or invested in one or more of the forms allowed in section 795; and

(5)__The contract complies with all other relevant requirements of subchapter 6;

Sec. 2. 24-A MRSA c. 9, sub-c. 6 is enacted to read:

SUBCHAPTER 6

SPECIAL PURPOSE REINSURANCE VEHICLE

§781.__Definitions

As used in this subchapter, unless the context otherwise indicates, the following terms have the following meanings.

1.__Aggregate limit.__"Aggregate limit" means the maximum sum payable to the ceding insurer under a special purpose reinsurance vehicle contract.

2.__Catastrophe excess of loss property reinsurance.__ "Catastrophe excess of loss property reinsurance" means excess of loss reinsurance for a catastrophe layer of a reinsurance program, written on either a per occurrence or aggregate basis.

3.__Catastrophe life or health reinsurance.__"Catastrophe life or health reinsurance" means reinsurance of life, health or annuity products that transfers mortality, morbidity, survival or other related risks in excess of existing proportional or nonproportional automatic and facultative treaties newly placed or in force on the same risks.

4.__Ceding insurer.__"Ceding insurer" means an insurer that enters into a special purpose reinsurance vehicle contract with a special purpose reinsurance vehicle and includes a reinsurer retroceding assumed reinsurance to a special purpose reinsurance vehicle.__A group of affiliated insurers under common control entering into a special purpose reinsurance vehicle contract on a coordinated basis is considered a single ceding insurer.

5.__Control.__"Control," including the terms "controlling," "controlled by" and "under common control," means the possession,