Conditions for SPFC contract being granted credit for reinsurance treatment or otherwise qualifying as asset or reduction from liability for benefit of counterparty

  1. Law
  2. US Virgin Islands Code
  3. Insurance
  4. Alternative Markets Act
  5. Special Purpose Financial Captives
  6. Conditions for SPFC contract being granted credit for reinsurance treatment or otherwise qualifying as asset or reduction from liability for benefit of counterparty

Checkout our iOS App for a better way to browser and research.

  • An SPFC contract meeting the provisions of this subchapter must be granted credit for reinsurance treatment or otherwise qualifies as an asset or a reduction from liability for reinsurance ceded by a domestic insurer to an SPFC as an assuming insurer for the benefit of the counterparty, provided and only to the extent:

    • (a) of the fair value of the assets held in trust for, or irrevocable letters of credit issued by a bank chartered by this Territory or a member bank of the Federal Reserve System or as approved by the SAM, for the benefit of the counterparty under the SPFC contract;

    • (b) the assets are held in trust pursuant to the provisions of this subchapter;

    • (c) the assets are administered in the manner and pursuant to arrangements as provided in this subchapter; and

    • (d) the assets are held or invested in one or more of the forms allowed in section 6665 of this Title.


Download our app to see the most-to-date content.