Vermont § 6048c - Definitions As used in this subchapter:

§ 6048c. Definitions As used in this subchapter:

• (1) “Ceding insurer” means an insurance company approved by the Commissioner and licensed
  or otherwise authorized to transact the business of insurance or reinsurance in its
  state or country of domicile, which cedes risk to a special purpose financial insurance
  company pursuant to a reinsurance contract. (2) “Insolvency” and “insolvent,” for purpose of applying the provisions of chapter 145
  of this title to a special purpose financial insurance company, mean: (A) that the special purpose financial insurance company is unable to pay its obligations
  when they are due, unless those obligations are the subject of a bona fide dispute;
  or (B) the special purpose financial insurance company has failed to meet all criteria and
  conditions for solvency of the special purpose financial insurance company established
  by the Commissioner by rule or order. (3) “Insurance securitization” and “securitization” mean a transaction or a group of related
  transactions, which may include capital market offerings, that are effected through
  related risk transfer instruments and facilitating administrative agreements where
  all or part of the result of such transactions is used to fund the special purpose
  financial insurance company’s obligations under a reinsurance contract with a ceding
  insurer and by which: (A) proceeds are obtained by a special purpose financial insurance company, directly or
  indirectly, through the issuance of securities by the special purpose financial insurance
  company or any other person; or (B) a person provides one or more letters of credit or other assets for the benefit of
  the special purpose financial insurance company, which the Commissioner authorizes
  the special purpose financial insurance company to treat as admitted assets for purposes
  of the special purpose financial insurance company’s annual report; where all or any
  part of such proceeds, letters of credit, or assets, as applicable, are used to fund
  the special purpose financial insurance company’s obligations under a reinsurance
  contract with a ceding insurer