2009 Iowa Code
Title 13 - Commerce
Subtitle 1 - Insurance and Related Regulation
CHAPTER 521G - PROTECTED CELL COMPANIES
521G.5 - ESTABLISHMENT OF PROTECTED CELLS.

        521G.5  ESTABLISHMENT OF PROTECTED CELLS.
         1.  A protected cell company may establish one or more protected
      cells with the prior written approval of the commissioner of a plan
      of operation or amendments to such plan submitted by the protected
      cell company with respect to each protected cell related to an
      insurance securitization.  The plan shall include, but not be limited
      to, the specific business objectives and investment guidelines of the
      protected cell company.  Upon the written approval of the
      commissioner of the plan of operation, the protected cell company,
      consistent with the approved plan of operation, may attribute to the
      protected cell insurance obligations with respect to its insurance
      business and obligations relating to the insurance securitization and
      assets to fund the obligations.  A protected cell shall have its own
      distinct name or designation, which shall include the words
      "protected cell".  The protected cell company shall transfer all
      assets attributable to a protected cell to one or more separately
      established and identified protected cell accounts bearing the name
      or designation of that protected cell.  Protected cell assets shall
      be held in the protected cell accounts for the purpose of satisfying
      the obligations of that protected cell.
         2.  Attribution of assets and liabilities between a protected cell
      and the general account shall be pursuant to the plan of operation.
      Other attribution of assets or liabilities shall not be made by a
      protected cell company between the protected cell company's general
      account and its protected cells.  The attribution of assets and
      liabilities between the general account and a protected cell, or from
      investors in the form of principal on a debt instrument issued by a
      protected cell company in connection with a protected cell company
      insurance securitization transaction, shall be in cash or in readily
      marketable securities with established market values.
         3.  The creation of a protected cell does not create, with respect
      to that protected cell, a legal person separate from the protected
      cell company.  An amount attributed to a protected cell under this
      chapter, including assets transferred to a protected cell account, is
      owned by the protected cell company and the protected cell company
      shall not be, or hold itself out to be, a trustee with respect to
      those protected cell assets of that protected cell account.
      Notwithstanding this subsection, a protected cell company may permit
      a security interest to attach to protected cell assets or a protected
      cell account which is in favor of a creditor of the protected cell
      company and otherwise allowed under applicable law.
         4.  This chapter shall not be construed to prohibit the protected
      cell company from contracting with or arranging for an investment
      advisor, commodity trading advisor, or other third party to manage
      the protected cell assets of a protected cell, provided that all
      remuneration, expenses, and other compensation of the third-party
      advisor or manager are payable from the protected cell assets of that
      protected cell and not from the protected cell assets of other
      protected cells or the assets of the protected cell company's general
      account.
         5. a.  A protected cell company shall establish administrative
      and accounting procedures necessary to properly identify the
      protected cells of the protected cell company and the protected cell
      assets and protected cell liabilities attributable to the protected
      cells.  The board of directors of a protected cell company shall do
      both of the following:
         (1)  Keep protected cell assets and protected cell liabilities
      separate and separately identifiable from the assets and liabilities
      of the protected cell company's general account.
         (2)  Keep protected cell assets and protected cell liabilities
      attributable to one protected cell separate and separately
      identifiable from protected cell assets and protected cell
      liabilities attributable to other protected cells.
         b.  Tracing shall be applicable to protected cell assets when
      commingled with protected cell assets of other protected cells or the
      assets of the protected cell company's general account.  The remedy
      of tracing shall not be construed as an exclusive remedy.
         6.  A protected cell company, when establishing a protected cell,
      shall attribute to the protected cell assets a value at least equal
      to the reserves and other insurance liabilities attributed to that
      protected cell.  

         2000 Acts, ch 1046, §5