(a) A protected cellcompany may establish one or more protected cells with the prior writtenapproval of the Commissioner of a plan of operation or amendments submitted bythe protected cell company with respect to each protected cell in connectionwith an insurance securitization. Upon the Commissioner's written approval ofthe plan of operation, which plan shall include the specific businessobjectives and investment guidelines of the protected cell, the protected cellcompany, in accordance with the approved plan of operation, may attribute tothe protected cell insurance obligations with respect to its insurance businessand obligations relating to the insurance securitization and assets to fund theobligations. A protected cell shall have its own distinct name or designation,which shall include the words "protected cell." The protected cellcompany shall transfer all assets attributable to a protected cell to one ormore separately established and identified protected cell accounts bearing thename or designation of that protected cell. Protected cell assets must be heldin the protected cell accounts for the purpose of satisfying the obligations ofthat protected cell.
(b) All attributions ofassets and liabilities between a protected cell and the general account must bein accordance with the plan of operation approved by the Commissioner. Aprotected cell company may make no other attribution of assets or liabilitiesbetween the protected cell company's general account and its protected cells.Any attribution of assets and liabilities between the general account and aprotected cell, or from investors in the form of principal on a debt instrumentissued by a protected cell company in connection with a protected cell companysecuritization, must be in cash or in readily marketable securities withestablished market values.
(c) The creation of aprotected cell does not create, with respect to that protected cell, a legalperson separate from the protected cell company. Amounts attributed to aprotected cell under this Chapter, including assets transferred to a protectedcell account, are owned by the protected cell company, and the protected cellcompany may not be, or may not hold itself out to be, a trustee with respect tothose protected cell assets of that protected cell account. Notwithstanding theprovisions of this subsection, the protected cell company may allow for asecurity interest to attach to protected cell assets or a protected cellaccount when in favor of a creditor of the protected cell and otherwise allowedunder applicable law.
(d) This Part does notprohibit the protected cell company from contracting with or arranging for aninvestment advisor, commodity trading advisor, or other third party to managethe protected cell assets of a protected cell, if all remuneration, expenses,and other compensation of the third‑party advisor or manager are payablefrom the protected cell assets of that protected cell and not from theprotected cell assets of other protected cells or the assets of the protectedcell company's general account.
(e) A protected cellcompany shall establish administrative and accounting procedures necessary toproperly identify the one or more protected cells of the protected cell companyand the protected cell assets and protected cell liabilities attributable tothe protected cells. It shall be the duty of the directors of a protected cellcompany to keep protected cell assets and protected cell liabilities:
(1) Separate and separatelyidentifiable from the assets and liabilities of the protected cell company'sgeneral account; and
(2) Attributable to oneprotected cell separate and separately identifiable from protected cell assetsand protected cell liabilities attributable to other protected cells.Notwithstanding the provisions of this subsection, if this subsection isviolated, the remedy of tracing is applicable to protected cell assets whencommingled with protected cell assets of other protected cells or the assets ofthe protected cell company's general account. The remedy of tracing is not anexclusive remedy.
(f) When establishinga protected cell, the protected cell company shall attribute to the protectedcell assets a value at least equal to the reserves and other insuranceliabilities attributed to that protected cell. (2001‑223, s. 25.)
(a) A protected cellcompany may establish one or more protected cells with the prior writtenapproval of the Commissioner of a plan of operation or amendments submitted bythe protected cell company with respect to each protected cell in connectionwith an insurance securitization. Upon the Commissioner's written approval ofthe plan of operation, which plan shall include the specific businessobjectives and investment guidelines of the protected cell, the protected cellcompany, in accordance with the approved plan of operation, may attribute tothe protected cell insurance obligations with respect to its insurance businessand obligations relating to the insurance securitization and assets to fund theobligations. A protected cell shall have its own distinct name or designation,which shall include the words "protected cell." The protected cellcompany shall transfer all assets attributable to a protected cell to one ormore separately established and identified protected cell accounts bearing thename or designation of that protected cell. Protected cell assets must be heldin the protected cell accounts for the purpose of satisfying the obligations ofthat protected cell.
(b) All attributions ofassets and liabilities between a protected cell and the general account must bein accordance with the plan of operation approved by the Commissioner. Aprotected cell company may make no other attribution of assets or liabilitiesbetween the protected cell company's general account and its protected cells.Any attribution of assets and liabilities between the general account and aprotected cell, or from investors in the form of principal on a debt instrumentissued by a protected cell company in connection with a protected cell companysecuritization, must be in cash or in readily marketable securities withestablished market values.
(c) The creation of aprotected cell does not create, with respect to that protected cell, a legalperson separate from the protected cell company. Amounts attributed to aprotected cell under this Chapter, including assets transferred to a protectedcell account, are owned by the protected cell company, and the protected cellcompany may not be, or may not hold itself out to be, a trustee with respect tothose protected cell assets of that protected cell account. Notwithstanding theprovisions of this subsection, the protected cell company may allow for asecurity interest to attach to protected cell assets or a protected cellaccount when in favor of a creditor of the protected cell and otherwise allowedunder applicable law.
(d) This Part does notprohibit the protected cell company from contracting with or arranging for aninvestment advisor, commodity trading advisor, or other third party to managethe protected cell assets of a protected cell, if all remuneration, expenses,and other compensation of the third‑party advisor or manager are payablefrom the protected cell assets of that protected cell and not from theprotected cell assets of other protected cells or the assets of the protectedcell company's general account.
(e) A protected cellcompany shall establish administrative and accounting procedures necessary toproperly identify the one or more protected cells of the protected cell companyand the protected cell assets and protected cell liabilities attributable tothe protected cells. It shall be the duty of the directors of a protected cellcompany to keep protected cell assets and protected cell liabilities:
(1) Separate and separatelyidentifiable from the assets and liabilities of the protected cell company'sgeneral account; and
(2) Attributable to oneprotected cell separate and separately identifiable from protected cell assetsand protected cell liabilities attributable to other protected cells.Notwithstanding the provisions of this subsection, if this subsection isviolated, the remedy of tracing is applicable to protected cell assets whencommingled with protected cell assets of other protected cells or the assets ofthe protected cell company's general account. The remedy of tracing is not anexclusive remedy.
(f) When establishinga protected cell, the protected cell company shall attribute to the protectedcell assets a value at least equal to the reserves and other insuranceliabilities attributed to that protected cell. (2001‑223, s. 25.)
(a) A protected cellcompany may establish one or more protected cells with the prior writtenapproval of the Commissioner of a plan of operation or amendments submitted bythe protected cell company with respect to each protected cell in connectionwith an insurance securitization. Upon the Commissioner's written approval ofthe plan of operation, which plan shall include the specific businessobjectives and investment guidelines of the protected cell, the protected cellcompany, in accordance with the approved plan of operation, may attribute tothe protected cell insurance obligations with respect to its insurance businessand obligations relating to the insurance securitization and assets to fund theobligations. A protected cell shall have its own distinct name or designation,which shall include the words "protected cell." The protected cellcompany shall transfer all assets attributable to a protected cell to one ormore separately established and identified protected cell accounts bearing thename or designation of that protected cell. Protected cell assets must be heldin the protected cell accounts for the purpose of satisfying the obligations ofthat protected cell.
(b) All attributions ofassets and liabilities between a protected cell and the general account must bein accordance with the plan of operation approved by the Commissioner. Aprotected cell company may make no other attribution of assets or liabilitiesbetween the protected cell company's general account and its protected cells.Any attribution of assets and liabilities between the general account and aprotected cell, or from investors in the form of principal on a debt instrumentissued by a protected cell company in connection with a protected cell companysecuritization, must be in cash or in readily marketable securities withestablished market values.
(c) The creation of aprotected cell does not create, with respect to that protected cell, a legalperson separate from the protected cell company. Amounts attributed to aprotected cell under this Chapter, including assets transferred to a protectedcell account, are owned by the protected cell company, and the protected cellcompany may not be, or may not hold itself out to be, a trustee with respect tothose protected cell assets of that protected cell account. Notwithstanding theprovisions of this subsection, the protected cell company may allow for asecurity interest to attach to protected cell assets or a protected cellaccount when in favor of a creditor of the protected cell and otherwise allowedunder applicable law.
(d) This Part does notprohibit the protected cell company from contracting with or arranging for aninvestment advisor, commodity trading advisor, or other third party to managethe protected cell assets of a protected cell, if all remuneration, expenses,and other compensation of the third‑party advisor or manager are payablefrom the protected cell assets of that protected cell and not from theprotected cell assets of other protected cells or the assets of the protectedcell company's general account.
(e) A protected cellcompany shall establish administrative and accounting procedures necessary toproperly identify the one or more protected cells of the protected cell companyand the protected cell assets and protected cell liabilities attributable tothe protected cells. It shall be the duty of the directors of a protected cellcompany to keep protected cell assets and protected cell liabilities:
(1) Separate and separatelyidentifiable from the assets and liabilities of the protected cell company'sgeneral account; and
(2) Attributable to oneprotected cell separate and separately identifiable from protected cell assetsand protected cell liabilities attributable to other protected cells.Notwithstanding the provisions of this subsection, if this subsection isviolated, the remedy of tracing is applicable to protected cell assets whencommingled with protected cell assets of other protected cells or the assets ofthe protected cell company's general account. The remedy of tracing is not anexclusive remedy.
(f) When establishinga protected cell, the protected cell company shall attribute to the protectedcell assets a value at least equal to the reserves and other insuranceliabilities attributed to that protected cell. (2001‑223, s. 25.)
