Issuance of securities--approved activities by director.
379.1382. 1. A SPLRC may issue securities, subject to and inaccordance with applicable law, its approved plan of operation and itsorganizational documents. A SPLRC may enter into and perform all itsobligations under any required contract to facilitate the issuance of thesesecurities.
2. Subject to the approval of the director, a SPLRC may:
(1) Account for the proceeds of surplus notes as surplus and not debtfor purposes of statutory accounting; and
(2) Submit for prior approval of the director periodic writtenrequests for payments of interest on and repayments of principal of surplusnotes.
3. The director may approve formulas for the ongoing payment ofinterest payments or principal repayments, or both.
4. The obligation to repay principal or interest, or both, on thesecurities issued by the SPLRC must reflect the risk associated with thereinsurance obligations assumed by the SPLRC.
5. The approval given for the ongoing payment of interest or therepayment of principal related to any securities or surplus notes, asoutlined in the plan of operations, may only be revoked or otherwisemodified by the director in the event the performance of the insurancebusiness assumed by the SPLRC under the SPLRC contract is demonstrated bythe director to be following a scenario as to mortality, morbidity,investment, or lapse experience that will cause the SPLRC to fail to meetits obligations under the SPLRC contract.
Issuance of securities--approved activities by director.
379.1382. 1. A SPLRC may issue securities, subject to and inaccordance with applicable law, its approved plan of operation and itsorganizational documents. A SPLRC may enter into and perform all itsobligations under any required contract to facilitate the issuance of thesesecurities.
2. Subject to the approval of the director, a SPLRC may:
(1) Account for the proceeds of surplus notes as surplus and not debtfor purposes of statutory accounting; and
(2) Submit for prior approval of the director periodic writtenrequests for payments of interest on and repayments of principal of surplusnotes.
3. The director may approve formulas for the ongoing payment ofinterest payments or principal repayments, or both.
4. The obligation to repay principal or interest, or both, on thesecurities issued by the SPLRC must reflect the risk associated with thereinsurance obligations assumed by the SPLRC.
5. The approval given for the ongoing payment of interest or therepayment of principal related to any securities or surplus notes, asoutlined in the plan of operations, may only be revoked or otherwisemodified by the director in the event the performance of the insurancebusiness assumed by the SPLRC under the SPLRC contract is demonstrated bythe director to be following a scenario as to mortality, morbidity,investment, or lapse experience that will cause the SPLRC to fail to meetits obligations under the SPLRC contract.
Issuance of securities--approved activities by director.
379.1382. 1. A SPLRC may issue securities, subject to and inaccordance with applicable law, its approved plan of operation and itsorganizational documents. A SPLRC may enter into and perform all itsobligations under any required contract to facilitate the issuance of thesesecurities.
2. Subject to the approval of the director, a SPLRC may:
(1) Account for the proceeds of surplus notes as surplus and not debtfor purposes of statutory accounting; and
(2) Submit for prior approval of the director periodic writtenrequests for payments of interest on and repayments of principal of surplusnotes.
3. The director may approve formulas for the ongoing payment ofinterest payments or principal repayments, or both.
4. The obligation to repay principal or interest, or both, on thesecurities issued by the SPLRC must reflect the risk associated with thereinsurance obligations assumed by the SPLRC.
5. The approval given for the ongoing payment of interest or therepayment of principal related to any securities or surplus notes, asoutlined in the plan of operations, may only be revoked or otherwisemodified by the director in the event the performance of the insurancebusiness assumed by the SPLRC under the SPLRC contract is demonstrated bythe director to be following a scenario as to mortality, morbidity,investment, or lapse experience that will cause the SPLRC to fail to meetits obligations under the SPLRC contract.
