Section 38-90-590 - Conditions for SPFC contract being granted credit for reinsurance treatment or otherwise qualifying as asset or reduction from liability for benefit of counterpartyA SPFC contract meeting the provisions of this article must be granted credit for reinsurance treatment or otherwise qualifies as an asset or a reduction from liability for reinsurance ceded by a domestic insurer to a SPFC as an assuming insurer pursuant to the provisions of Section 38-9-210 for the benefit of the counterparty, provided and only to the extent:
(1) of the fair value of the assets held in trust for, or irrevocable letters of credit issued by a bank chartered by this State or a member bank of the Federal Reserve System or as approved by the director, for the benefit of the counterparty under the SPFC contract;(2) the assets are held in trust pursuant to the provisions of this article;(3) the assets are administered in the manner and pursuant to arrangements as provided in this article; and(4) the assets are held or invested in one or more of the forms allowed in Section 38-90-530.2004 Act No. 291, Section 28, eff 7/29/2004.