An Act Related to Special Purpose Reinsurance Vehicles
Maine Legislature, Session 123, LD 1390
Committee Amendment CA_A_H456 (House)
Amends: 24-A MRSA §731-B, 24-A MRSA §781, 24-A MRSA §782, 24-A MRSA §784, 24-A MRSA §784-A, 24-A MRSA §786, 24-A MRSA §788, 24-A MRSA §789, 24-A MRSA §792, 24-A MRSA §793, 24-A MRSA §796, 24-A MRSA §796-A, 24-A MRSA §798

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to H.P. 982, L.D. 1390, Bill, "An Act Related 
to Special Purpose Reinsurance Vehicles" 
Amend the bill by inserting after the title the following: 
'Emergency preamble. Whereas, acts and resolves of the Legislature do not 
become effective until 90 days after adjournment unless enacted as emergencies; and 
Whereas, current law imposes outdated restrictions that hinder the ability of a 
Maine domestic insurer to form special purpose reinsurance vehicles; and 
Whereas, due to these restrictions, market conditions cause a Maine domestic 
insurer to seek authorization for special purpose reinsurance vehicles in other states; and 
Whereas, this legislation authorizes the establishment of special purpose 
reinsurance vehicles by Maine domestic insurers with the approval of the Superintendent 
of Insurance; and 
Whereas, in the judgment of the Legislature, these facts create an emergency within 
the meaning of the Constitution of Maine and require the following legislation as 
immediately necessary for the preservation of the public peace, health and safety; now, 
therefore, ' 
Amend the bill by striking out everything after the enacting clause and before the 
summary and inserting the following: 
'Sec. 1. 24-A MRSA §731-B, sub-§l, ~A, as amended by PL 2003, c. 249, §l, is 
further amended to read: 
A. 
Is licensed to transact insurance or reinsurance in this State, provided the 
assuming insurer maintains surplus as regards policyholders in an amount not less 
than the sum of paid-in capital stock, if any, and surplus as otherwise required for a 
certificate of authority for the kinds and amount of insurance and assumed 
reinsurance the insurer has in force net of any applicable ceded reinsurance. If the 
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to H.P. 982, L.n. 1390 
assuming insurer is licensed as a special purpose reinsurance vehicle pursuant to 
section 782 and maintains capital and surplus in accordance with the requirements of 
section 787, credit for reinsurance under a special purpose reinsurance vehicle 
contract, as defined in section 781, subsection 15, is allowed only to the extent that: 
(1) The fair value of the assets held iR trust by or for the benefit of the ceding 
insurer equals or exceeds the obligations due and payable to the ceding insurer by 
the special purpose reinsurance vehicle under the special purpose reinsurance 
vehicle contract; 
(2) 
The assets are held lR trust in accordance with the requirements in 
subchapter 6; 
(3) The assets are administered in the manner and pursuant to arrangements 
under subchapter 6; 
(4) The assets are held or invested in one or more of the forms allowed in 
section 795~ and 
(5) The contract complies with all other relevant requirements of subchapter 6~ 
Sec. 2. 24-A MRSA §781, sub-§7, as enacted by PL 2003, c. 249, §2, is amended 
to read: 
7. 
Fully funded. 
"Fully funded" means, with respect to a special purpose 
reinsurance vehicle contract, that the fair value of the assets under the control of the 
ceding insurer or held in trust by or OR behalf for the benefit of the speeial purpose 
reiRSl:lfaRee vekiele ceding insurer under the special purpose reinsurance vehicle contract 
on the date on which the special purpose reinsurance vehicle contract is effected, equals 
or exceeds the aggregate limit as defined in this subekapter subsection 1. 
Sec. 3. 24-A MRSA §781, sub-§7-A is enacted to read: 
7-A. Impairment. "Impairment" or "impaired" means, with respect to a special 
purpose reinsurance vehicle or any of its protected cells, that either: 
A. The available capital of the special purpose reinsurance vehicle or protected cell 
has fallen below the applicable initial capital requirement without the approval of the 
superintendent; or 
B. The fair value of the assets under the control of the ceding insurer or held in trust 
for the benefit of the ceding insurer under a special purpose reinsurance vehicle 
contract is less than the aggregate limit remaining under the contract as of the time 
the determination is made. 
Sec. 4. 24-A MRSA §781, sub-§9, as enacted by PL 2003, c. 249, §2, is amended 
to read: 
9. 
Insolvency. 
"Insolvency" or "insolvent" means that the special purpose 
reinsurance vehicle or one or more of its protected cells is unable to pay its obligations 
when they are due unless the obligations are the subject of a bona fide dispute. 
Sec. 5. 24-A MRSA §781, sub-§l1-A is enacted to read: 
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to H.P. 982, L.D. 1390 
ll-A. Protected cell. "Protected cell" means a separate account established and 
maintained by a special purpose reinsurance vehicle for one special purpose reinsurance 
vehicle contract and the accompanying insurance securitization with a ceding insurer as 
further provided for in section 784-A. 
Sec. 6. 
24-A MRSA §781, sub-§16, as enacted by PL 2003, c. 249, §2, is 
amended to read: 
16. 
Special purpose reinsurance vehicle insurance securitization; insurance 
securitization. 
"Special purpose reinsurance vehicle insurance securitization" or 
"insurance securitization" means a package of related risk transfer instruments, capital 
market offerings and facilitating administrative agreements by which proceeds are 
obtained by a special purpose reinsurance vehicle directly or indirectly through the 
issuance of securities and are held in trust or under the control of the ceding insurer 
pursuant to the requirements of this subchapter to secure the obligations of the special 
purpose reinsurance vehicle under a one or more special purpose reinsurance vehicle 
COBtraCt contracts with one or more ceding insurers, aBa iB vAlich the sflecial fll:lFfJose 
reiBSl:lraBCe vehicle's obligatioR to fetl:lm the full iRitial iRvestmeBt to the hoMefs of sl:lch 
secl:lfities flUfSl:laBt to the tnlRsaotioR teffHs is cORtiBgeRt lifloR the HlRaS Bot beiRg I:lsea to 
flay the obligatioRs oHhe sfleoial fl\:lFfJose feiBSl:lfaFI:Oe "ehiole to the oeaiBg iRslifefs I:lRaef 
the special flliFfJose feiRstlfaRoe "ehiole oOBtraat when investment risk to the holders of 
these securities is contingent upon the obligations of the special purpose reinsurance 
vehicle to the ceding insurer or ceding insurers under the special purpose reinsurance 
vehicle contract in accordance with the transaction terms. 
Sec. 7. 24-A MRSA §782, sub-§2, ~, as enacted by PL 2003, c. 249, §2, is 
amended to read: 
H. 
A plan of operation, consisting of a description of the contemplated insurance 
securitization or securitizations, the special purpose reinsurance vehicle contract and 
related transactions, which must include: 
(1) Draft documentation or at the discretion of the superintendent a written 
summary of all material agreements that are planned in order to effectuate the 
insurance securitization or securitizations and the related contract, including the 
names of the ceding insurers, the nature of the risks being assumed and the 
maximum amounts, purpose and nature and the interrelationships of the various 
transactions required to effectuate the insurance securitization or securitizations; 
(2) The investment strategy of the special purpose reinsurance vehicle and a 
representation that the investment strategy complies with the investment 
requirements set forth in this subchapter and that the strategy includes investment 
practices or other provisions to preserve asset values that facilitate attainment of 
full funding during the term of the insurance securitization or securitizations with 
assets that can be monetized in response to a triggering event without a 
substantial loss in value; 
(3) A description of the method by which losses covered by the contract that 
may develop after the termination of the contract period are to be addressed 
under the provisions of the contract; aB6 
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(4) A If applicable, a representation that the special purpose reinsurance vehicle 
contract with the ceding insurer, the security agreement or trust agreement under 
section 784, subsection ~ 1, paragraph D-l or E and tfle any trusts holding assets 
that secure the obligations of the special purpose reinsurance vehicle under the 
contract and the contract with the ceding insurers in connection '""ith the 
contemplated insurance securiti:t:ation are structured in accordance with the 
requirements under this subchapter7 ; and 
(5) 
If protected cells are to be used, a description of the procedures for 
maintaining and safeguarding separate accounts as required by section 784-A, 
subsection 1 and an application for approval of each initial protected cell as 
required by section 784-A, subsection 2. 
Sec. 8. 24-A MRSA §782, sub-§6, as enacted by PL 2003, c. 249, §2, is amended 
to read: 
6. Documentation of insurance securitization. The special purpose reinsurance 
vehicle organizer shall provide a complete set of the documentation of the insurance 
securitization to the superintendent upon closing of any transactions, including an opinion 
of legal counsel with respect to compliance with this subchapter and any other applicable 
laws as of the effective date of any transaction. PJt)' material change to the special 
pUFJ>ose reinsuranoe vehiole's plan of operation filed pursuant to subseotion 2, inoluding, 
but not limited to, the issuanoe of nev .. seourities to oontiRue the insuraRce seouriti:t:ation 
activities of the speoial pUFJ>ose reiRsuFanoe vehiole pursuant to this subohapter after 
~£pffation and full satisfaction of the initial seouriti:t:ation transaotioRs, requires prior 
approval of the superintefldent. A olumge ifl the oounteFJ>arty to swap traflsactiofls for afl 
existing insuranoe seouriti:t:ation as allowed uflder this subohapter is not oonsidered a 
material ohange unless the speoial pUFJ>ose reiflsuranoe 'rehiole's managers Irnovt' or 
should know that the flew oounteFJ>art)' presents a substantial risk of default. 
Sec. 9. 24-A MRSA §782, sub-§7 is enacted to read: 
7. Changes in plan of operation. Any material change to the special purpose 
reinsurance vehicle's plan of operation filed pursuant to subsection 2, including, but not 
limited to, the initiation of a new insurance securitization to continue the activities of the 
special purpose reinsurance vehicle pursuant to this subchapter after expiration and full 
satisfaction of the initial securitization transactions, requires prior approval of the 
superintendent. 
A change in the counterparty to swap transactions for an existing 
insurance securitization as allowed under this subchapter is not considered a material 
change unless the special purpose reinsurance vehicle's managers know or should know 
that the new counterparty presents a substantial risk of default. 
Sec. 10. 24-A MRSA §784, sub-§I, as enacted by PL 2003, c. 249, §2, is 
amended to read: 
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; 
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to H.P. 982, I.D. 1390 
B. 
Are securitized in full through a single special purpose reinsurance vehicle 
insurance securitization or, if protected cells are used, through a single special 
purpose reinsurance vehicle insurance securitization for each protected cell; 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. 
Sec. 11. 24-A MRSA §784, sub-§2, as enacted by PL 2003, c. 249, §2, is 
amended to read: 
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 
specifying additional lines of business that may be reinsured by a special purpose 
reinsurance vehicle or approves a waiver of the requirement of this subsection for good 
cause shown with respect to a particular application. 
Sec. 12. 24-A MRSA §784, sub-§3, as enacted by PL 2003, c. 249, §2, is 
amended to read: 
3. Multiple ceding insurers. A special purpose reinsurance vehicle may enter into 
contracts with multiple ceding insurers only if each contract is attributable to a different 
protected cell or 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 lO-cedent limit. 
Sec. 13. 24-A MRSA §784, sub-§4, as enacted by PL 2003, c. 249, §2, is 
amended to read: 
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 duties incident to the insurance securitization and the special purpose 
reinsurance vehicle contract. The agreements may include entering into swap agreements 
or other transactions that have the objective of leveling timing differences in funding 
upfront or ongoing transaction expenses or managing credit or interest rate risk of the 
investments in trust to ensure that the assets held in trust are sufficient to satisfy payment 
or repayment of the securities issued pursuant to an insurance securitization transaction 6f 
tfte and any other obligations of the special purpose reinsurance vehicle HAder the 
eOAtraet. In fulfilling its function, the special purpose reinsurance vehicle shall adhere to 
the following requirements and shall, to the extent of its powers, ensure that contracts 
obligating other parties to perform certain functions incident to its operations are 
substantively and materially consistent with the following requirements and guidelines. 
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to H.P. 982, L.D. 1390 
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A. A special purpose reinsurance vehicle must have a distinct name, which must 
include the designation "SPRV" or "Special Purpose Reinsurance Vehicle." The 
name of the reinsurance vehicle may not be deceptively similar to, or likely to be 
confused with or mistaken for, any other existing business name registered in this 
State. 
B. Unless otherwise provided in the plan of operation, the principal place of business 
and office of any reinsurance vehicle organized under this subchapter must be located 
in this State. 
C. The assets of a reinsurance vehicle must be preserved and administered by or on 
behalf of the reinsurance vehicle to satisfY the liabilities and obligations of the 
reinsurance vehicle incident to the insurance securitization and other related 
agreements including the contract. 
O. Assets Except as provided in paragraph 0-1, assets of the reinsurance vehicle that 
are pledged to secure obligations of the reinsurance vehicle to a ceding insurer under 
a contract must be held in trust and administered by a qualified United States 
financial institution serving as trustee. 
The qualified United States financial 
institution may not control, be controlled by or be under common control with the 
reinsurance vehicle or any ceding insurer. 
0-1. If approved by the superintendent, the reinsurance vehicle and the ceding 
insurer may enter into a written agreement, in compliance with the ceding insurer's 
applicable domiciliary credit for reinsurance laws, under which the assets pledged as 
security, in lieu of being held in trust, are held in the United States subject to 
withdrawal solely by the ceding insurer and under its exclusive control. The security 
agreement may not be approved unless the superintendent determines that the 
agreement is consistent with the purposes of this subsection, that the ceding insurer 
has unconditional access to the funds necessary to fulfill the reinsurance vehicle's 
obligations to the ceding insurer and that the assets withheld under the control of the 
ceding insurer are never less than the amount that would otherwise be required to be 
held in trust. 
E. The agreement gO'leming the trust described in paragraph D must ereate must be 
governed by a written agreement between the reinsurance vehicle and the ceding 
insurer that creates one or more trust accounts into which all pledged assets must be 
deposited and held until distributed in accordance with the trust agreement. The 
pledged assets must be held by the trustee at the trustee's office in the United States 
and may be held in certificated or electronic form. 
F. The provisions for withdrawal by the ceding insurers insurer of funds from the 
trust must comply with the ceding insurer's applicable domiciliary credit for 
reinsurance laws and be clean and unconditional, subject only to the following 
requirements: 
(1) The ceding insurer has the right to withdraw assets from the trust account at 
any time without notice to the reinsurance vehicle subject only to written notice 
to the trustee from the ceding insurer that funds in the amount requested are due 
and payable by the reinsurance vehicle; 
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If, 
(2) No other statement or document need be presented in order to withdraw 
assets, except that the ceding insurer may be required to acknowledge receipt of 
withdrawn assets; 
(3) The trust agreement described in paragraph E must indicate that it is not 
subject to any conditions or qualifications outside of the trust agreement; 
(4) The trust agreement described in paragraph E may not contain references to 
any other agreements or documents; and 
(5) Reference may not be made to the fact that these funds may represent 
reinsurance premiums or that the funds have been deposited for any specific 
purpose. 
G. The trust agreement described in paragraph E must be established for the sole use 
and benefit of the ceding insurer at least to the full extent of the reinsurance vehicle's 
obligations to the ceding insurer under the contract. In the case of more than one 
ceding insurer or more than one reinsurance contract with the same ceding insurer, a 
separate trust agreement must be entered into with each ceding insurer and a separate 
trust account must be maintained for each ceding insurer. 
H. The trust agreement described in paragraph E must provide for the trustee to: 
(1) Receive assets and hold all assets in a safe place; 
(2) Determine that all assets are in a form that the ceding insurer or the trustee, 
upon direction by the ceding insurer, may whenever necessary negotiate the 
assets, without consent or signature from the reinsurance vehicle or any other 
person or entity; 
(3) Furnish to the reinsurance vehicle, the superintendent and the ceding insurer 
a statement of all assets in the trust account referred to in paragraph E reported at 
fair value upon its inception and at intervals no less frequent than the end of each 
calendar quarter; 
(4) Notify the reinsurance vehicle and the ceding insurer within 10 days of any 
deposits to or withdrawals from the trust account referred to in paragraph E; 
(5) 
Upon written demand of the ceding insurer, immediately take steps 
necessary to transfer absolutely all right, title and interest in the assets held in the 
trust account referred to in paragraph E to the ceding insurer and deliver physical 
custody of the assets to the ceding insurer; and 
(6) Allow no substitutions or withdrawals of assets from the trust account 
referred to in paragraph E except on written instructions from the ceding insurer. 
I. The trust agreement described in paragraph E must provide that at least 30 days 
but not more than 45 days before termination of the trust account written notification 
of termination must be delivered by the 3rd party trustee to the ceding insurer. 
J. 
The trust agreement described in paragraph E may be made subject to and 
governed by the laws of any state in addition to the requirements for the trust as 
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to H.P. 982, L.D. 1390 
provided in this subchapter as long as the state is disclosed in the plan of operation 
filed with and approved by the superintendent. 
K. The trust agreement described in paragraph E must prohibit invasion of the trust 
account referred to in paragraph E for the purpose of paying compensation to or 
reimbursing the expenses of the trustee. 
L. The trust agreement described in paragraph E must provide that the trustee be 
liable for the trustee's own negligence, willful misconduct or lack of good faith. 
(1) Notwithstanding the provisions of paragraph F, subparagraphs (3) to (5) and 
paragraph M, subparagraph (5), when a trust agreement described in paragraph E 
is established in conjunction with a contract, then the trust agreement may 
provide that the ceding insurer shall undertake to use and apply any amounts 
drawn upon the trust account without diminution because of the insolvency of the 
ceding insurer or the reinsurance vehicle for the following purposes: 
(a) To payor reimburse the ceding insurer amounts due to the ceding 
insurer under the contract, including, but not limited to, unearned premiums 
due to the ceding insurer if not otherwise paid by the reinsurance vehicle in 
accordance with the terms of that trust agreement; or 
(b) When the ceding insurer has received notification of termination of the 
trust account referred to in paragraph E and when some or all of the 
reinsurance vehicle's obligations under the specific contract remain 
unliquidated and undischarged 10 days before the termination date, to 
withdraw amounts equal to the undischarged obligations and deposit the 
amounts in a separate account in the name of the ceding insurer in any 
qualified United States financial institution apart from its general assets in 
trust for the sole purpose of discharging any contractual obligations of the 
reinsurance vehicle that may remain executory after the withdrawal and for 
any period after the termination date. Assets so held must revert to the 
reinsurance vehicle when they are no longer necessary to secure the 
obligations of the reinsurance vehicle and may not exceed the sum of the 
following amounts as determined in good faith by the ceding insurer: 
(i) 
Losses and loss expenses paid by the ceding insurer but not 
recovered from the reinsurance vehicle; 
(ii) Reserves for losses reported and outstanding; 
(iii) Reserves for losses incurred but not reported; 
(iv) Reserves for loss expenses; 
(v) Reserves for unearned premiums; and 
(vi) Any additional amount necessary to maintain full funding of the 
aggregate limit remaining under the contract if the period of coverage or 
the agreed-upon period of loss development has yet to expire. 
(2) The provisions to be included in the trust agreement described in paragraph 
E pursuant to this paragraph may instead be included in the underlying contract. 
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M. A special purpose reinsurance vehicle contract must contain provisions that: 
(1) Require the reinsurance vehicle to enter into a trust agreement described in 
paragraph B and to establish a tHlst aCCOl:lHt referred to in paragraph B for the 
benefit of the ceding inslirer and specifYing "'lhat reco'lerables or reserves or both 
the trust agreement is to cO'ler; ~ 
(a) Enter into a trust agreement described in paragraph E and establish a trust 
account referred to in paragraph E for the benefit of the ceding insurer; or 
(b) Enter into a security agreement described in paragraph D-l. The trust 
agreement or security agreement must specify what recoverables or reserves 
or both the agreement is to cover; 
(2) Stipulate that assets deposited in the trHst accoHnt pledged as security be 
valued according to their current fair value for purposes of the contract and may 
consist only of permitted investments; 
(3) Reql:lire If applicable, require the reinsurance vehicle, before depositing 
assets with the trustee, to execute assignments or endorsements in blank or to 
transfer legal title to the trustee of all shares, obligations or any other assets 
requiring assignments in order that the ceding insurer or the trustee upon the 
direction of the ceding insurer may whenever necessary negotiate any such assets 
without consent or signature from the reinsurance vehicle or any other entity; 
(4) Require that all settlements of account between the ceding insurer and the 
reinsurance vehicle be made in cash or its equivalent; and 
(5) Stipulate that the reinsurance vehicle and the ceding insurer agree that the 
assets in tfle any trust account referred to in paragraph E and established pursuant 
to the provisions of the contract may be withdrawn by the ceding insurer at any 
time notwithstanding any other provisions in the contract and must be used and 
applied by the ceding insurer or any successor by operation of law of the ceding 
insurer, including, but not limited to, and subject to the provisions of section 793, 
any liquidator, rehabilitator, receiver or conservator of the ceding insurer, without 
diminution because of insolvency on the part of the ceding insurer or the 
reinsurance vehicle, only for the following purposes: 
(a) To transfer all such assets into one or more trust accounts pursuant to 
Paragraph paragraph L for the benefit of the ceding insurer pursuant to the 
terms of the contract and in compliance with this subchapter; and 
(b) To pay any other amounts that the ceding insurer claims are due under 
the contract. 
N. The contract entered into by the reinsurance vehicle may contain provisions that 
give the reinsurance vehicle the right to seek approval from the ceding insurer to 
withdraw from the trust account referred to in paragraph E all or part of the assets 
contained in the trust account and to transfer the assets to the reinsurance vehicle as 
long as: 
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COMMITTEE AMENDMENT ",D " to H.P. 982, L.D. 1390 
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(1) The reinsurance vehicle shall at the time of the withdrawal replace the 
withdrawn assets with other qualified assets having a fair value equal to the fair 
value of the assets withdrawn and that meet the requirements of section 795; and 
(2) After the withdrawals and transfer, the fair value of the assets in the trust 
account referred to in paragraph E securing the obligations of the reinsurance 
vehicle under the contract is no less than an amount needed to satisfy the full 
funding requirement of the contract. The ceding insurer has the sole discretion to 
determine whether these provisions have been satisfied but may not unreasonably 
nor arbitrarily withhold its approval. 
O. The contract must provide that investors in the reinsurance vehicle agree that any 
obligation to repay principal, interest or dividends on the securities issued by the 
reinsurance vehicle must be reduced upon the occurrence of a triggering event, to the 
extent that the assets of the reinsurance vehicle held in trust for the benefit of the 
ceding insurer are remitted to the ceding insurer in fulfillment of the obligations of 
the reinsurance vehicle under the contract. 
P. Assets held by a reinsurance vehicle in trust must be valued at their fair value. 
Q. The proceeds from the sale of securities by the reinsurance vehicle to investors 
must be deposited with the trustee or under the control of the ceding insurer as 
described in this subchapter and must be held or invested by the tmstee in accordance 
with the requirements of section 795. 
R. A reinsurance vehicle organized under this subchapter may engage only in fully 
funded contracts to support in full the ceding insurer's exposures assumed by the 
reinsurance vehicle. 
A contract must be indemnity-triggered unless the 
superintendent adopts rules pursuant to section 797 authorizing nonindemnity-
triggered contracts and addressing the treatment of the portion of the risk that is 
non indemnity-based, including accounting, disclosure, risk-based capital treatment 
and the manner in which risks associated with a non indemnity-based contract may be 
evaluated and managed. 
Assets of the reinsurance vehicle may be used to pay 
interest or other consideration on any outstanding debt or other obligation of the 
reinsurance vehicle and nothing in this paragraph may be construed or interpreted to 
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prevent a reinsurance vehicle from entering into a swap agreement or other 
transaction that has the effect of guaranteeing interest or other consideration. 
S. In the special purpose reinsurance vehicle insurance securitization, the contracts 
or other relating documentation must contain provisions identifying the reinsurance 
vehicle that enters into the reinsurance securitization and the contracts or other 
documentation must clearly disclose that the assets of the reinsurance vehicle and 
only those assets are available to pay the obligations of that reinsurance vehicle. 
Notwithstanding this paragraph, and subject to the provisions of this subchapter and 
any other applicable law, the failure to include such language in the contracts or other 
documentation may not be used as the sole basis by creditors, reinsurers or other 
claimants to circumvent the provisions of this subchapter. 
T. A reinsurance vehicle is not authorized to: 
(1) Issue or otherwise administer primary insurance policies; 
Page lO-123LR1688(02)-1 
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COMMITTEE AMENDMENT "M "to H.P. 982, L.D. 1390 
(2) Have any obligation to the policyholders or reinsureds of the ceding insurer; 
(3) 
Enter into a contract with a person that is not licensed or otherwise 
authorized to conduct the business of insurance or reinsurance in at least its state 
or country of domicile; or 
(4) Assume or retain exposure to insurance or reinsurance losses for its own 
account that is not initially fully funded by proceeds from an insurance 
securitization that meets the requirements of this subchapter. 
U. At the cessation of business of a reinsurance vehicle, the limited certificate of 
authority granted by the superintendent under section 782 expires and the reinsurance 
vehicle may no longer be authorized to conduct activities pursuant to this subchapter 
until a new certificate of authority is issued pursuant to a new filing in accordance 
with section 782. The completion of a reinsurance vehicle's securitization activities 
does not constitute the cessation of business for purposes of this paragraph if the 
reinsurance vehicle's approved business plan contemplates additional securitizations. 
V. It is unlawful for a reinsurance vehicle to lend or otherwise invest or place in 
custody, trust or under management any of its assets with or to borrow money or 
receive a loan or advance from, other than by issuance of the securities pursuant to an 
insurance securitization, from anyone convicted of a felony, anyone who is 
untrustworthy or of known bad character or anyone convicted of a criminal offense 
involving the conversion or misappropriation of fiduciary funds or insurance 
accounts, theft, deceit, fraud, misrepresentation or corruption. 
W. 
A special purpose reinsurance vehicle may purchase reinsurance with the 
approval of the superintendent to retrocede risks assumed through a special purpose 
reinsurance vehicle contract. Reinsurance purchased by the reinsurance vehicle does 
not reduce the aggregate limit of the reinsurance vehicle or the covered protected cell 
and may only be credited toward the funding requirements of the reinsurance vehicle 
or the covered protected cell to the extent that the ceding insurer has a direct right of 
recovery against the retrocessionaire that is secured by assets deposited with the 
trustee or under the control of the ceding insurer in accordance with this section and 
held or invested in accordance with the requirements of section 795. 
Sec. 14. 24-A MRSA §784-A is enacted to read: 
§784-A. Protected cells 
1. Establishment of protected cells. A special purpose reinsurance vehicle may 
establish and maintain one or more protected cells with the prior written approval of the 
superintendent, subject to compliance with the provisions of this section. 
A. A protected cell may be established only for the purpose of insuring or reinsuring 
risks of one or more special purpose reinsurance vehicle contracts with the intent of 
facilitating an insurance securitization. The establishment of a protected cell in 
compliance with this section in connection with a lawful insurance securitization does 
not constitute a fraudulent conveyance, a scheme to defraud creditors or a transaction 
of business for a fraudulent purpose. 
COMMITTEE AMENDMENT 
" , 
COMMITTEE AMENDMENT "/~ " to H.P. 982, L.D. 1390 
B. Each protected cell must be accounted for separately on the books and records of 
the special purpose reinsurance vehicle to reflect the financial condition and results of 
operations of the protected cell, net income or loss, dividends or other distributions 
for the special purpose reinsurance vehicle contract with each cell and other factors as 
may be provided in the special purpose reinsurance vehicle contract, insurance 
securitization transaction documents, plan of operation or business plan, or as 
required by the superintendent. 
The special purpose reinsurance vehicle must 
establish administrative and accounting procedures necessary for the proper 
attribution of protected cell assets and protected cell liabilities to each protected cell. 
The directors of a special purpose reinsurance vehicle shall keep the protected cell 
assets and liabilities attributable to each protected cell separate and separately 
identifiable from the assets and liabilities of the special purpose reinsurance vehicle's 
general account and from the protected cell assets and liabilities attributable to any 
other protected cell. 
C. 
Amounts attributed to a protected cell under this section, including assets 
transferred to a protected cell account, are owned by the special purpose reinsurance 
vehicle, and the special purpose reinsurance vehicle is not and may not hold itself out 
to be a trustee with respect to those protected cell assets of that protected cell 
account. 
D. All attributions of assets and liabilities between a protected cell and the general 
account must be in accordance with the plan of operation approved by the 
superintendent. No other attribution of assets or liabilities may be made by a special 
purpose reinsurance vehicle between the special purpose reinsurance vehicle's general 
account and its protected cell or cells. The special purpose reinsurance vehicle must 
attribute all insurance obligations, assets and liabilities relating to a special purpose 
reinsurance vehicle contract and the related insurance securitization transaction, 
including any securities issued by the special purpose reinsurance vehicle as part of 
the insurance securitization and any taxes or other obligations arising by operation of 
law, to the associated protected cell. 
E. The assets of a protected cell are not chargeable with liabilities arising out of a 
special purpose reinsurance vehicle contract related to or associated with another 
protected cell. More than one special purpose reinsurance vehicle contract may not be 
attributed to the same protected cell unless those special purpose reinsurance vehicle 
contracts are intended to be, and ultimately are, part of a single securitization 
transaction. 
F. A sale, exchange or other transfer of assets may not be made by the special 
purpose reinsurance vehicle between or among any of its protected cells without the 
consent of the superintendent. the ceding insurer or insurers and the holders of the 
securities issued by each protected cell. 
G. A sale, exchange, transfer of assets, dividend or distribution may not be made 
from a protected cell without the superintendent's approval except as authorized in 
advance under the special purpose reinsurance vehicle contract or related insurance 
securitization transaction documents and may not be approved if the sale, exchange, 
transfer, dividend or distribution would result in insolvency or impairment with 
respect to a protected cell. 
COMMITTEE AMENDMENT 
0, 
COMMITTEE AMENDMENT "p. "to H.P. 982, L.D. 1390 
H. A special purpose reinsurance vehicle may pay interest or repay principal, or 
both, and make distributions or repayments in respect of any securities attributed to a 
particular protected cell from assets or cash flows relating to or emerging from the 
special purpose reinsurance vehicle contract and the insurance securitization 
transactions that are attributable to that particular protected cell in accordance with 
the provisions of this subchapter or as otherwise approved by the superintendent. 
2. Approval of protected cells. A special purpose reinsurance vehicle contract with 
or attributable to a protected cell does not take effect without the superintendent's prior 
written approval, and the addition of each new protected cell constitutes a change in the 
business plan requiring the superintendent's prior written approval and the amendment of 
the special purpose reinsurance vehicle's limited certificate of authority. The 
superintendent may retain legal, fmancial and examination services from outside the 
bureau to examine and investigate the application for a protected cell, the reasonable cost 
of which may be charged against the applicant, or the superintendent may use internal 
resources to examine and investigate the application, the reasonable cost of which may be 
charged against the applicant up to a maximum of $12,000, or both. The application for 
approval of a protected cell must include a plan of operation for the protected cell 
consistent with the requirements of section 782, subsection 2, paragraph H. 
3. Minimum capital requirements. A special purpose reinsurance vehicle with 
protected cells shall possess and maintain capitalization in each protected cell in the 
amount and manner required for a special purpose reinsurance vehicle in section 787 and, 
in addition, shall possess and maintain minimum capitalization separate and apart from 
the capitalization of its protected cell or cells in an amount determined by the 
superintendent after giving due consideration of the special purpose reinsurance vehicle's 
business plan, feasibility study and proforma financial statements, including the nature of 
the risks to be insured or reinsured. 
4. Status of protected cells. A protected cell is not a legal person separate from the 
special purpose reinsurance vehicle. However, a protected cell must have its own distinct 
name or designation that includes the words "protected cell" and all protected cells must 
be identified by name in the special purpose reinsurance vehicle's limited certificate of 
authority. The special purpose reinsurance vehicle shall hold all assets attributable to the 
protected cell in one or more separately established and identified protected cell accounts 
bearing the name or designation of that protected cell. 
A. The assets of a protected cell are available only to the ceding insurer and other 
creditors of that protected cell and may not be used to pay expenses or claims other 
than those attributable to the protected cell. Creditors with respect to a protected cell 
are not entitled to any recourse against the protected cell assets of other protected 
cells or the assets of the special purpose reinsurance vehicle's general account. If an 
obligation of a special purpose reinsurance vehicle relates only to the general 
account, the creditor is entitled to have recourse with respect to that obligation only to 
the assets of the general account. 
B. Protected cell assets may not be pledged or otherwise encumbered except for the 
benefit of creditors of that protected cell in furtherance of the securitization in 
accordance with the approved plan of operation. 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "H" to H.P. 982, L.D. 1390 
• 
C. All contracts or other documentation reflecting protected cell liabilities must 
clearly indicate that only the protected cell assets are available for the satisfaction of 
those protected cell liabilities. In all special purpose reinsurance vehicle insurance 
securitizations involving a protected cell, the contracts or other documentation 
effecting the transaction must contain provisions identifying the protected cell to 
which the transaction is attributed. In addition, the contracts or other documentation 
must clearly disclose that the assets of that protected cell, and only those assets, are 
available to pay the obligations of that protected cell. However, failure to include 
express language attributing obligations under a contract to a protected cell does not 
give a party the right to void or reform the contract if the party had notice that the 
contract related to a protected cell. 
D. IUhe special purpose reinsurance vehicle enters into a contract involving more 
than one protected cell, the rights and obligations relating to each protected cell must 
be several rather than joint and the contract must make clear provisions for their 
apportionment between protected cells. 
E. In any action or proceeding involving the potential for monetary recovery by or 
against a special purpose reinsurance vehicle with protected cells, or for nonmonetary 
relief relating to a particular protected cell or cells, any process, pleading or order 
must name the specific cell or cells affected, including if applicable the general 
account. 
5. Separate administrative services. A special purpose reinsurance vehicle may 
contract with or arrange for an investment advisor, commodity trading advisor or other 
3rd party to manage the assets or administer the obligations of a protected cell, if all 
remuneration, expenses and other compensation arising out of services performed with 
respect to that protected cell are payable only from the assets of that protected cell or, 
with the approval of the superintendent, from the assets ofthe special purpose reinsurance 
vehicle's general account. 
6. Notice of impairment or insolvency. A special purpose reinsurance vehicle with 
protected cells shall notify the superintendent in writing within 10 business days after the 
special purpose reinsurance vehicle or any protected cell becomes impaired or insolvent. 
7. Conversion to protected cell framework. A special purpose reinsurance vehicle 
without protected cells may apply to the superintendent in accordance with subsection 2 
to revise its plan of operation to establish one or more protected cells. If there is an 
existing insurance securitization in force at the time of the application, the revised plan of 
operation must provide for the establishment of a protected cell for that securitization and 
the transfer to the protected cell of all assets and liabilities relating to the securitization. 
8. Termination of protected cell. At the cessation of business of a protected cell in 
accordance with the plan approved by the superintendent, the special purpose reinsurance 
vehicle shall close out the protected cell account and the superintendent shall modify the 
limited certificate of authority to reflect the termination. 
Sec. 15. 24-A MRSA §786, as enacted by PL 2003, c. 249, §2, is amended to 
read: 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT'~ "to H.P. 982, L.D. 1390 
§786. Affiliation 
Notwithstanding the provIsIons of section 222, the special purpose reinsurance 
vehicle, the special purpose reinsurance vehicle organizer or subsequent debt or equity 
investors in special purpose reinsurance vehicle securities are not deemed affiliates of the 
ceding insurer by virtue of the special purpose reinsurance vehicle contract between the 
ceding insurer and the reinsurance vehicle, the securities of the reinsurance vehicle or 
related agreements necessary to implement the special purpose reinsurance vehicle 
insurance securitization. The reiRsHraRce vehicle ma), Rot Be cOBtrolled BY, may Rot 
60Btrol aBel may Bot Be uRder cammeR cOBtrol 'lAth aB)' cediBg iBsHfer that is a part)' to a 
6oBtraet. 
Sec. 16. 24-A MRSA §788, as enacted by PL 2003, c. 249, §2, is amended to 
read: 
§788. Dividends 
The special purpose reinsurance vehicle may not declare or pay dividends in any 
form to its owners unless the dividends do not decrease the capital of cause the 
reinsurance vehicle Below $5,000 or any of its protected cells to become impaired and, 
after giving effect to the dividends, the assets of the reinsurance vehicle, including assets 
held in trust pursuant to the terms of the insurance securitization, must be sufficient to 
meet its obligations. Except for dividends specifically provided for in the approved plan 
of operation under section 782, subsection 2, paragraph H, the prior approval of the 
superintendent is required for any dividend paid during the term of coverage or while the 
reinsurance vehicle has undischarged obligations to the ceding insurer. The dividends 
may be declared by the board of directors of the reinsurance vehicle if the dividends 
would not violate the provisions of this subchapter or the approved plan of operation and 
would not jeopardize the fulfillment of the obligations of the reinsurance vehicle or the 
trustee pursuant to the special purpose reinsurance vehicle insurance securitization, the 
special purpose reinsurance vehicle contract or any related transaction. The provisions of 
section 222, subsections 11-A and II-B do not apply to such dividends. 
Sec. 17. 24-A MRSA §789, sub-§2, as enacted by PL 2003, c. 249, §2, IS 
amended to read: 
2. Statement of operation. Each special purpose reinsurance vehicle organized 
under this subchapter shall file with the superintendent no later than March 1st of each 
year a statement of operations, including a statement of income, a balance sheet and a 
detailed listing of invested assets, including identification of assets held in trust to secure 
the reinsurance vehicle's obligations under the special purpose reinsurance vehicle 
contract, for the year ending the prior December 31 st. The statements must be prepared 
in accordance with statutory accounting principles consistent with section 901-A on 
forms required by the superintendent. 
If one or more protected cells have been 
established, the statement must detail the financial experience of the general account and 
each protected cell separately, in addition to providing the combined financial experience 
of the special purpose reinsurance vehicle and all protected cells. 
Sec. 18. 24-A MRSA §792, as enacted by PL 2003, c. 249, §2, is amended to 
read: 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT 'A "to H.P. 982, L.D. 1390 
§792. Dissolution 
A special purpose reinsurance vehicle operating under this subchapter may be 
dissolved at any time by a vote of its directors under section 790 and after the action has 
been approved by the superintendent. Voluntary dissolution may not be effected or 
allowed until and unless all of the obligations of the reinsurance vehicle pursuant to the 
insurance securitization or securitizations have been fully and finally satisfied pursuant to 
their terms. In the case of voluntary dissolution, the disposition of the affairs of the 
reinsurance vehicle, including the settlement of all outstanding obligations, must be made 
by the officers or directors of the reinsurance vehicle and when the liquidation has been 
completed and a final statement in acceptable form has been filed with and approved by 
II 
the superintendent the provisions for voluntary dissolution under section 3484 must be 
followed to dissolve the reinsurance vehicle. 
Sec. 19. 24-A MRSA §793, as enacted by PL 2003, c. 249, §2, is amended to 
read: 
§793. Conservation, rehabilitation or liquidation 
1. Authorized insurer. A special purpose reinsurance vehicle is considered an 
authorized insurer for purposes of section 4351, subsection 1 
~ and the provisions of 
chapter 57 apply to a reinsurance vehicle or to any of a reinsurance vehicle's protected 
cells, except to the extent modified by this section. 
2. Grounds for action. Notwithstanding the provisions of sections 4356 and 4357, 
the Superior Court may issue an order authorizing the superintendent to conserve, 
rehabilitate or liquidate a special purpose reinsurance vehicle domiciled in this State~ 
one or more of its protected cells, only if the superintendent proves by clear and 
convincing evidence or the reinsurance vehicle stipulates after notice and opportunity for 
hearing that: 
A. There has been embezzlement, wrongful sequestration, dissipation or diversion of 
the assets of the reinsurance vehicle or protected cell intended to be used to pay 
amounts owed to the ceding insurer or the holders of special purpose reinsurance 
vehicle securities; or 
B. The reinsurance vehicle or protected cell is insolvent and the holders of a majority 
in outstanding principal amount of each class of special purpose reinsurance vehicle 
securities request or consent to conservation, rehabilitation or liquidation under this 
subchapter. 
3. Receiver. Notwithstanding any contrary provision of this Title, rules adopted 
under this Title or any other applicable law, upon any order of conservation, 
rehabilitation or liquidation of the special purpose reinsurance vehicle or one or more of 
its protected cells, a receiver is bound to deal with the reinsurance vehicle's assets and 
liabilities in accordance with the requirements under this subchapter. 
3-A. Protected cells. The following provisions apply to the insolvency of a special 
purpose reinsurance vehicle with protected cells or to the insolvency of a protected cell. 
A. The insolvency of one protected cell does not constitute the insolvency of any 
other protected cell or of the special purpose reinsurance vehicle itself. 
The 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "R" to H.P. 982, L.D. 1390 
insolvency of a special purpose reinsurance vehicle does not constitute the insolvency 
of any of its solvent protected cells and is not a basis for the receivership of any 
solvent protected celI capable of independent operation. 
B. Notwithstanding the insolvency of the special purpose reinsurance vehicle or of 
any other protected cell, the obligations attributed to any solvent protected cell must 
continue to be paid as they come due. 
C. The assets attributed to a protected cell may not be applied to the liabilities 
attributed to another protected cell or to the reinsurance vehicle generally, except 
that: 
(1) 
If the insolvency of the special purpose reinsurance vehicle renders a 
protected cell incapable of being managed independently, a receiver may, after 
consultation with the creditors of the protected cell, contract for the management 
of the protected cell and charge to the protected cell a reasonable amount for 
those services; 
(2) A general liability of an insolvent special purpose reinsurance vehicle may be 
apportioned equitably in whole or in part to one or more of its protected cells if 
the Superior Court determines that the liability arises out of the operations of the 
protected cell or cells and that the interests of innocent creditors of the protected 
cell or cells are not unreasonably impaired; and 
(3) If assets or liabilities have been commingled, or have been wrongfully 
transferred between protected cells or between a protected cell and the general 
account, the Superior Court shall trace the assets and attribute them to the proper 
accounts, giving due consideration to the terms of any relevant governing 
instrument or contract. 
D. 
The plan of rehabilitation or liquidation of any special purpose reinsurance 
vehicle with protected cells must make reasonable provision for the continued 
operation of all solvent protected cells, which may involve the formation of one or 
more new special purpose reinsurance vehicles or the transfer of one or more 
protected cells. 
4. Recoverable amounts. With respect to amounts recoverable under a special 
purpose reinsurance vehicle contract, the amount recoverable by the receiver may not be 
reduced or diminished as a result of the entry of an order of conservation, rehabilitation or 
liquidation with respect to the ceding insurer, notwithstanding any provisions to the 
contrary in the contracts or other documentation governing the special purpose 
reinsurance vehicle insurance securitization. 
A. Notwithstanding the provisions of chapter 57, an application or petition in any 
delinquency proceeding relating to a ceding insurer or any temporary restraining 
order or injunction issued in any such proceeding may not prohibit the transaction of 
any business by a reinsurance vehicle, including any payment by a reinsurance 
vehicle made pursuant to a special purpose reinsurance vehicle security or any action 
or proceeding against a reinsurance vehicle or its assets. 
B. Notwithstanding the provisions of chapter 57, subchapter 2, the commencement 
of a summary proceeding or other interim proceeding commenced prior to a formal 
COMMITTEE AMENDMENT 
,",' 
l3 
!'\ II 
COMMITTEE AMENDMENT "L.,~ ,,, to H.P. 982, L.D. 1390 
n 
delinquency proceeding with respect to a reinsurance vehicle and any order issued by 
the court in such proceeding may not prohibit a reinsurance vehicle from making a 
payment pursuant to a special purpose reinsurance vehicle security or contract or 
from taking any action required to make the payment. 
5. Nonfraudulent transfer. Notwithstanding any other provision of chapter 57 or 
other state law: 
A. A receiver of a ceding insurer may not a¥eid void a nonfraudulent transfer by a 
ceding insurer to a special purpose reinsurance vehicle of money or other property 
made pursuant to a special purpose reinsurance vehicle contract; and 
B. A receiver of a special purpose reinsurance vehicle may not void a nonfraudulent 
transfer by the reinsurance vehicle of money or other property made to a ceding 
insurer pursuant to a special purpose reinsurance vehicle contract or made to or for 
the benefit of any holder of a special purpose reinsurance vehicle security on account 
of the special purpose reinsurance vehicle security. 
6. 
Fulfillment of obligations. 
With the exception of the fulfillment of the 
obligations under a special purpose reinsurance vehicle contract and notwithstanding any 
other provisions of this subchapter or other law of this State to the contrary, the assets of 
a special purpose reinsurance vehicle including assets held in trust may not be 
consolidated with or included in the estate of a ceding insurer in any delinquency 
proceeding against the ceding insurer under this subchapter for any purpose, including, 
without limitation, distribution to creditors of the ceding insurer. 
7. Domiciliary receiver. Notwithstanding any other provision of this subchapter: 
A. The domiciliary receiver of a special purpose reinsurance vehicle domiciled in 
another state is vested by operation of law with the title to all of the assets, property, 
contracts and rights of action and all of the books, accounts and other records of the 
reinsurance vehicle located in this State. The domiciliary receiver has the immediate 
right to recover all such vested property, assets and causes of action of the 
reinsurance vehicle located in this State,; ; and 
B. 
An ancillary proceeding may not be commenced or prosecuted in this State 
against a special purpose reinsurance vehicle domiciled in another state. 
Sec. 20. 24-A MRSA §796, as enacted by PL 2003, c. 249, §2, is amended to 
read: 
§796. No transaction of insurance business by investors in securities 
The securities issued by the special purpose reinsurance vehicle pursuant to a special 
purpose reinsurance vehicle insurance securitization are not deemed to be insurance or 
reinsurance contracts. 
An investor in such securities issued pursuant to insurance 
securitization or any holder of such securities may not by sole means of this investment 
or holding be deemed to be transacting an insurance business in this State. 
The 
underwriters or selling agents and their partners, directors, officers, members, managers, 
employees, agents, representatives and advisors involved in an insurance securitization 
are not deemed to be conducting an insuranee or reinsl:Irafl6e agency, brokerage, 
intermediary, advisory or consl:Ilting bl:lsiness acting as insurance or reinsurance 
COMMITTEE AMENDMENT 
• 
() 
COMMITTEE AMENDMENT "{1" to H.P. 982, L.D. 1390 
producers, intermediaries or consultants by virtue of their activities in connection with the 
special purpose reinsurance vehicle or with the insurance securitization. 
Sec. 21. 24-A MRSA §796-A is enacted to read: 
§796-A. Confidentiality of proprietary information 
Any requirement established by this subchapter to file proprietary business 
information with the superintendent does not in and of itself make that information a 
public record. Information filed with the superintendent pursuant to this subchapter is 
entitled to any privileges and confidentiality protections that would apply if the special 
purpose reinsurance vehicle were a captive insurance company licensed by the 
superintendent pursuant to section 6702. 
Sec. 22. 24-A MRSA §798, sub-§3 is enacted to read: 
3. Variance. The superintendent may issue an order exempting a special purpose 
reinsurance vehicle or a protected cell from provisions of this subchapter upon a finding 
that the variance is necessary for conformance to the laws or regulatory requirements of a 
ceding insurer's state of domicile and that the variance is consistent with the purposes of 
this subchapter given the nature of the risks to be insured. 
Emergency clause. 
In view of the emergency cited in the preamble, this 
legislation takes effect when approved. ' 
SUMMARY 
This amendment replaces the bill. 
The amendment allows the establishment of 
special purpose reinsurance vehicles to facilitate the securitization of insurance risks. 
The amendment removes the prohibition on a special purpose reinsurance vehicle being 
controlled by, controlling, or being under common control with the ceding insurer. The 
amendment allows a special purpose reinsurance vehicle to use protected cells as part of 
one special purpose reinsurance vehicle contract. The amendment also makes changes to 
update the current law to be consistent with similar legislation in other states. 
The 
amendment also adds an emergency preamble and emergency clause. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Fiscal Detail and Notes 
Approved: 06/0 1107 
~ac:.. 
LD 1390 
LR 1688(02) 
An Act Related to Special Purpose Reinsurance Vehicles 
Fiscal Note for Bill as Amended by Committee Amendment ,,4 " 
Committee: Insurance and Financial Services 
Fiscal Note Required: Yes 
Fiscal Note 
Minor cost increase - Other Special Revenue Funds 
Any additional costs to the Bureau of Insurance in the Department of Professional and Financial Regulation can be 
absorbed by the bureau utilizing existing budget resources.