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2021 Tennessee Code
Title 56 - Insurance
Chapter 13 - Revised Tennessee Captive Insurance Act
Part 4 - Special Purpose Financial Captives
§ 56-13-414. Preservation and Administration of Assets — Disclosures — Restrictions on Investments
Universal Citation:
TN Code § 56-13-414 (2021)
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- The assets of an SPFC shall be preserved and administered by or on behalf of the SPFC to satisfy the liabilities and obligations of the SPFC incident to the reinsurance contract, the insurance securitization, and other related agreements.
- In the insurance securitization, the security offering memorandum or other document issued to prospective investors regarding the offer and sale of a surplus note or other security shall include a disclosure that all or part of the proceeds of such insurance securitization will be used to fund the SPFC's obligations to the ceding insurer.
- No SPFC shall be subject to any restriction on investments other than the following:
- The commissioner may limit investments by an SPFC to those categories and amounts of authorized investments delineated in chapter 3, parts 3 or 4 of this title, as applicable and as amended from time to time;
- No SPFC shall make a loan to any person other than as permitted under its plan of operation or as otherwise approved in advance by the commissioner; and
- The commissioner may prohibit or limit any investment that threatens the solvency or liquidity of the SPFC unless the investment is otherwise approved in its plan of operation or in an order issued to the SPFC pursuant to § 56-13-404, as either is amended from time to time.
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