215 ILCS 5/179A-15

(215 ILCS 5/179A-15)

Sec. 179A-15.

Establishment of protected cells.

(a) A domestic company may,
with the prior written approval by the Director of a
plan of operation
submitted by the domestic company with respect to each protected cell,
establish one or more
protected cells in connection with an insurance securitization. Upon the
written approval by the Director of the plan of
operation, which shall
include, but not be limited to, the specific business and investment
guidelines
of the protected
cell, the protected cell company may, in accordance with the approved plan
of operation,
attribute to the
protected cell insurance obligations with
respect to
its insurance
business and obligations relating to the insurance securitization and
assets to fund those obligations. A protected cell shall have
its own distinct name
or designation, which shall include the words "protected cell". The protected
cell company
shall transfer all
assets attributable to a protected cell to one or more separately established
and identified
protected cell accounts bearing the name or designation of that protected cell.
 Protected cell
assets shall be held in the protected cell accounts for the purpose of
satisfying the obligations of
that protected cell.

(b) All attributions of assets and
liabilities between a protected
cell and the general account shall be in accordance
with the
plan
of operation approved by the Director. No
other
attribution of assets or
liabilities may be made by a protected cell company
between the
protected cell company's general account and its
protected cells.
Any attribution of assets and
liabilities between the general account and a protected cell
or from investors in the form of principal on a debt instrument
issued by a
protected cell company shall be in cash or in readily marketable securities
with
established market values.

(c) The creation of a protected cell does not create, in respect of that
protected cell, a legal person
separate from the protected cell company. Amounts attributed to a protected
cell under this
Article, including
assets transferred to a protected cell account, are owned by the protected
cell company and
the protected cell company may
not be, nor hold itself out to be, a trustee with respect to those protected
cell assets of that
protected cell account. Notwithstanding the foregoing, the company may allow
for a security
interest to attach to protected cell assets or a protected cell account when in
favor of a creditor of
the protected cell and otherwise allowed under applicable law.

(d) This Article shall not be construed to prohibit the protected cell
company from
contracting with or
arranging for an investment advisor, commodity trading advisor, or other third
party to manage
the protected cell assets of a protected cell, provided that all remuneration,
expenses, and other
compensation of the third party advisor or manager are payable from the
protected cell assets of
that protected cell and not from the protected cell assets of other protected
cells or the assets of
the protected cell company's general account.

(e) A protected cell company shall
establish
administrative and
accounting procedures necessary to properly identify the one or more
protected cells of the
protected cell company and the protected cell assets and protected cell
liabilities
attributable to the protected cells.  It shall be
the duty of the directors of a protected cell company to:

(1) keep protected cell assets and protected cell