§ 27-64-6. Reach of creditors and other claimants.
(a)(1) Protected cell assets shall only be available to the creditors of the protected cell
company that are creditors in respect to that protected cell and shall be entitled,
in conformity with the provisions of this chapter, to have recourse to the protected
cell assets attributable to that protected cell, and shall be absolutely protected
from the creditors of the protected cell company that are not creditors in respect
of that protected cell and who, accordingly, shall not be entitled to have recourse
to the protected cell assets attributable to that protected cell. Creditors with respect
to a protected cell shall not be entitled to have recourse against the protected cell
assets of other protected cells or the assets of the protected cell company's general
account.
(2) Protected cell assets shall only be available to creditors of a protected cell company
after all protected cell liabilities have been extinguished or provided for in accordance
with the plan of operation relating to that protected cell.
(b) When an obligation of a protected cell company to a person arises from a transaction,
or is imposed, in respect of a protected cell: (1) That obligation of the protected
cell company shall extend only to the protected cell assets attributable to that protected
cell, and the person shall, with respect to that obligation, be entitled to have recourse
only to the protected cell assets attributable to that protected cell; and (2) That
obligation of the company shall not extend to the protected cell assets of any other
protected cell or the assets of the protected cell company's general account, and
that person shall not, with respect to that obligation, be entitled to have recourse
to the protected cell assets of any other protected cell or the assets of the protected
cell company's general account.
(c) When an obligation of a protected cell company relates solely to the general account,
the obligation of the protected cell company shall extend only to, and that creditor
shall, with respect to that obligation, be entitled to have recourse only to the assets
of the protected cell company's general account.
(d) Other than with regard to the application of this section, the activities, assets,
and obligations relating to a protected cell are not subject to the provisions of
chapters 34, 34.1 [repealed], and 34.3 of this title and neither a protected cell
nor a protected cell company shall be assessed by or be required to contribute to
any guaranty fund or guaranty association in this state with respect to the activities,
assets, or obligations of a protected cell. Nothing in this section shall affect the
activities or obligations of an insurer's general account.
(e) In no event shall the establishment of one or more protected cells alone constitute
or be deemed to be a fraudulent conveyance; an intent by the protected cell company
to defraud creditors; or the carrying out of business by the protected cell company
for any other fraudulent purpose.