§784.__Approved transactions and operation of special purpose

reinsurance vehicles

1.__Contracts.__Special purpose reinsurance vehicles authorized under this subchapter may enter into and effectuate special purpose reinsurance vehicle contracts with one or more ceding insurers as long as the contracts:

A.__Obligate the reinsurance vehicle to indemnify the ceding insurer for losses;

B.__Are securitized in full through a single special purpose reinsurance vehicle insurance securitization; and

C.__Are fully funded and secured with assets held in trust in accordance with the requirements of this section pursuant to agreements proposed under this subchapter, and invested in a manner that meets the criteria set forth in section 795.

2.__Eligible lines of business.__A special purpose reinsurance vehicle contract may only provide catastrophe excess of loss property reinsurance coverage or catastrophe life or health reinsurance coverage, unless the superintendent adopts rules pursuant to section 797 specifying additional lines of business that may be reinsured by a special purpose reinsurance vehicle.

3.__Multiple ceding insurers.__A special__purpose reinsurance vehicle may enter into contracts with multiple ceding insurers only if:

A.__The special purpose reinsurance vehicle reinsures no more than 10 ceding insurers; and

B.__Each ceding insurer has no more than $50,000,000 in surplus as reported in its most recent financial statement filed with its domiciliary regulator, as of the date the special purpose reinsurance vehicle is licensed.__A group of ceding insurers under common control may elect to be treated as separate insurers for purposes of this subsection, but only if each insurer in the group that is reinsured by the same special purpose reinsurance vehicle is counted separately for purposes of the 10-cedent limit.

4.__Terms of operation.__A special purpose reinsurance vehicle may enter into agreements with 3rd parties and conduct business necessary to fulfill its obligations and administrative