Protected Cell Companies Act

The Protected Cell Companies Act allows an insurer to segregate designated pools of assets and liabilities, called protected cells, within a single company so that each cell's assets are insulated from claims against the company's other cells and its general account. It sets out how cells are established and operated, defines the extent to which creditors and other claimants may reach cell assets, and confirms that a protected cell does not itself transact insurance business. The act also provides for rulemaking, penalties for violations, and separate treatment of protected cells and their parent companies in conservation, rehabilitation, and liquidation proceedings, including the compensation of receivers.

Editorial summary generated from the text of this act. It is not part of the statute — read the sections below for the operative language.