Authorized contracts

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  • (a) An SPFC may insure only the risks of a counter party.

  • (b) An SPFC may not issue a contract for assumption of risk or indemnification of loss other than an SPFC contract. However, the SPFC may cede risks assumed through an SPFC contract to third party international reinsurers through the purchase of reinsurance or retrocession protection on terms approved by the SAM.

  • (c) An SPFC may enter into contracts and conduct other commercial activities related or incidental to and necessary to fulfill the purposes of the SPFC contract, insurance securitization, and this subchapter. Those activities may include: entering into SPFC contracts; issuing securities of the SPFC in accordance with applicable securities law; complying with the terms of these contracts or securities; entering into trust, swap, tax, administration, reimbursement, or fiscal agent transactions; or complying with trust indenture, reinsurance, or retrocession, and other agreements necessary or incidental to effectuate an insurance securitization in compliance with this subchapter or the plan of operation approved by the SAM.

  • (d) An SPFC may discount its reserves at discount rates as approved by the SAM.

  • (e) An SPFC shall file annually an actuarial opinion on reserves provided by an approved and licensed independent actuary.


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