CHAPTER 249

S.P. 522 - L.D. 1553

An Act To Permit Special Purpose Reinsurance Vehicles

Be it enacted by the People of the State of Maine as follows:

Sec. 1. 24-A MRSA §731-B, sub-§1, ķA, as amended by PL 1991, c. 828, §16, is further amended to read:

A. Is licensed to transact insurance or reinsurance in this State, provided the assuming insurer maintains surplus as regards policyholders in an amount not less than the sum of paid-in capital stock, if any, and surplus as otherwise required for a certificate of authority for the kinds and amount of insurance and assumed reinsurance the insurer has in force net of any applicable ceded reinsurance.__If the assuming insurer is licensed as a special purpose reinsurance vehicle pursuant to section 782 and maintains capital and surplus in accordance with the requirements of section 787, credit for reinsurance under a special purpose reinsurance vehicle contract, as defined in section 781, subsection 15, is allowed only to the extent that:

(1)__The fair value of the assets held in trust for the benefit of the ceding insurer equals or exceeds the obligations due and payable to the ceding insurer by the special purpose reinsurance vehicle under the special purpose reinsurance vehicle contract;