Rhode Island General Laws 27-64-2. Purpose
This act is adopted to provide a basis for the creation of protected cells by a domestic insurer as one means of accessing alternative sources of capital and achieving the benefits of insurance securitization or voluntary restructuring as contemplated under chapter 14.5 of this title, including through effectuating insurance business transfers in accordance with the procedures promulgated by the commissioner under § 27-14.5-6. Investors in fully funded insurance securitization transactions provide funds that are available to pay the insurer’s insurance obligations or to repay the investors or both. The creation of protected cells is intended to be a means to achieve more efficiencies in conducting insurance securitizations or voluntary restructurings.
History of Section.
P.L. 1999, ch. 22, § 1; P.L. 2001, ch. 156, § 1; P.L. 2018, ch. 218, § 3; P.L. 2018, ch. 290, § 3.
Terms Used In Rhode Island General Laws 27-64-2
- Commissioner: means the director of the department of business regulation. See Rhode Island General Laws 27-64-3
- Domestic insurer: means an insurance or reinsurance company domiciled in the state or a captive insurance or reinsurance company domiciled in the state. See Rhode Island General Laws 27-64-3
- Fully funded: means that, with respect to any exposure attributed to a protected cell, the fair value of the protected cell assets, on the date on which the insurance securitization is effected, equals or exceeds the maximum possible exposure attributable to the protected cell with respect to those exposures. See Rhode Island General Laws 27-64-3