1. (a) If approved by the commissioner, the following are considered to be and must be reported as admitted assets of a limited purpose subsidiary:

   1. (1) Proceeds from a securitization, premiums, and other amounts payable by an affiliate to the limited purpose subsidiary.
   2. (2) Letters of credit.
   3. (3) Guarantees of the parent.
   4. (4) Other assets.

2. (b) If the commissioner determines that the value of admitted assets that:

   1. (1) were previously approved by the commissioner under subsection (a); and

   2. (2) are not assets that are addressed by the Accounting Practices and Procedures Manual;

      has decreased, the commissioner may require the limited purpose subsidiary to provide additional security or collateral.

3. (c) The commissioner shall, at least thirty (30) days before taking action under subsection (b):

   1. (1) notify the limited purpose subsidiary of the action; and
   2. (2) provide to the limited purpose subsidiary an opportunity to remedy the issues identified by the commissioner.

As added by P.L.11-2011, SEC.7. Amended by P.L.115-2011, SEC.4; P.L.124-2018, SEC.18.