(a) One or more entities may form a protected cell insurance company under this chapter.
(b) A protected cell insurance company formed or licensed under this chapter may establish and maintain one or more protected cells to insure risks of one or more participants, subject to the following conditions:
(1) each protected cell must be accounted for separately on the books and records of the captive insurance company established pursuant to Chapter 54 of this title or each Securitization Entity or SPFC established pursuant to this chapter 66 to reflect the financial condition and results of operations of the protected cell, net income or loss, dividends or other distributions to participants, and other factors may be provided in the participant contract or required by the SAM;
(2) the assets of a protected cell must not be chargeable with liabilities arising out of any other insurance business the sponsored captive insurance company, established pursuant to Chapter 54 of this Title or each Securitization Entity or SPFC established pursuant to this Chapter 66, may conduct;
(3) no sale, exchange, or other transfer of assets may be made by the captive insurance company established pursuant to Chapter 54 of this title or each Securitization Entity or SPFC established pursuant to this chapter 66 between or among any of its protected cells without the consent of the protected cells;
(4) no sale, exchange, transfer of assets, dividend, or distribution may be made from a protected cell or participant without the SAM's approval and in no event may the approval be given if the sale, exchange, transfer, dividend, or distribution would result in insolvency or impairment with respect to a protected cell;
(5) a protected cell insurance company annually shall file with the SAM such financial reports as the SAM requires which includes, but are not limited to, accounting statements detailing the financial experience of each protected cell;
(6) a protected cell insurance company shall notify the SAM in writing within ten business days of a protected cell that is insolvent or otherwise unable to meet its claim or expense obligations; and
(7) no participant contract may take effect without the SAM's prior written approval, and the addition of each new protected cell and withdrawal of any participant of any existing protected cell constitutes a change in the business plan requiring the SAM's prior written approval.