AI-assisted research summary: A special purpose financial captive insurance company must preserve and administer its assets for specified liabilities, include a disclosure in investor documents unless waived by the commissioner, and follow conditions on investments and loans.
(a) The assets of a special purpose financial captive insurance company shall be preserved and administered by or on behalf of the special purpose financial captive insurance company to satisfy the liabilities and obligations of the special purpose financial captive insurance company, the insurance securitization, and other related contracts and agreements. (b) Unless waived by the commissioner, any security offering memorandum or other document issued to prospective investors regarding the offer and sale of a surplus note or other special purpose financial captive insurance company securities shall include a disclosure that all or part of the proceeds of the insurance securitization will be used to fund the special purpose financial captive insurance company's obligations to the counterparty. (c) A special purpose financial captive insurance company shall not be subject to any restriction on investments; provided that the special purpose financial captive insurance company: (1) Maintains compliance with the strategic investment policy adopted by the special purpose financial captive insurance company; and (2) Shall not make a loan to any person other than as permitted under its plan of operation or as otherwise approved in advance by the commissioner; provided further that the commissioner may prohibit or limit any investment that threatens the solvency or liquidity of the special purpose financial captive insurance company unless the investment is otherwise approved in its plan of operation or in an order issued to the special purpose financial captive insurance company pursuant to section 431:19-202(c). [L 2008, c 190, pt of §1]