Vermont § 6048h - Securities

§ 6048h. Securities

• (a) A special purpose financial insurance company may: (1) subject to the prior approval of the Commissioner, account for the proceeds of a surplus
  note issued by the special purpose financial insurance company as surplus; and (2) submit for prior approval of the Commissioner periodic written requests for authorization
  to make payments of interest on and repayments of principal of surplus notes and other
  debt obligations issued by the special purpose financial insurance company, provided
  that the Commissioner shall not approve such payment if the Commissioner determines
  that such payment would jeopardize the ability of the special purpose financial insurance
  company or any other person to fulfill his or her respective obligations pursuant
  to the special purpose financial insurance company securitization agreements, the
  reinsurance contract, or any related transaction. In lieu of approval of periodic
  written requests for authorization to make payments of interest on and repayments
  of principal of surplus notes and other debt obligations issued by the special purpose
  financial insurance company, the Commissioner may approve a formula or plan, which
  shall be included in the special purpose financial insurance company’s plan of operation
  as amended from time to time, for payment of interest, principal, or both with respect
  to such surplus notes and debt obligations. (b) In addition to the provisions of section 6005 of this chapter, no dividend or distribution
  may be declared or paid by a special purpose financial insurance company if such dividend
  or distribution would jeopardize the ability of the special purpose financial insurance
  company or any other person to fulfill the company’s or other person’s respective
  obligations pursuant to the special purpose financial insurance company securitization
  agreements, the reinsurance contract, or any related transaction. (c) A special purpose financial insurance company security shall not be subject to regulation
  as an insurance or reinsurance contract. An investor in such a security or a holder
  of such a security shall not be considered to be transacting the business of insurance
  in this State solely by reason of having an interest in the security. The underwriter’s
  placement or selling agents and their partners, commissioners, officers, members,
  managers, employees, agents, representatives, and advisors involved in an insurance
  securitization by a special purpose financial insurance company shall not be considered
  to be insurance producers or brokers or to be conducting business as an insurance
  or reinsurance company or as an insurance agency, brokerage, intermediary, advisory,
  or consulting business solely by virtue of their underwriting activities in connection
  with such securitization. (Added 2007, No. 49, § 17; amended 2013, No. 29, § 59, eff. May 13, 2013.)