Okla. Stat. tit. 36, § 36-1693

As used in the Protected Cell Companies Act:

1. "Commissioner" means the Oklahoma Insurance Commissioner;

2. "Domestic insurer" means an insurance or reinsurance company

domiciled in the State of Oklahoma or a captive insurance or

reinsurance company domiciled in the State of Oklahoma;

3. "Fair value" of an asset or liability means the monetary

amount at which that asset or liability could be bought, incurred,

sold or settled in a current transaction between willing parties

other than in a forced or liquidation sale. Quoted market prices in

active markets are the best evidence of fair value and shall be used

as the basis for the measurement, if available. If a quoted market

price is available, the fair value is the product of the number of

trading units times market price. If quoted market prices are not

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available, the estimate of fair value shall be based on the best

information available. The estimate of fair value shall consider

prices for similar assets and liabilities and the results of

valuation techniques to the extent available in the circumstances.

Examples of valuation techniques include the present value of

estimated expected future cash flows using a discount rate

commensurate with the risks involved, option pricing models, matrix

pricing, option-adjusted spread models and fundamental analysis.

Valuation techniques for measuring financial assets and liabilities

and servicing assets and liabilities shall be consistent with the

objective of measuring fair value. Those techniques shall

incorporate assumptions that market participants would use in their

estimates of values, future revenues and future expenses, including

assumptions about interest rates, default, prepayment and

volatility. When measuring financial liabilities and servicing

liabilities at fair value by discounting estimated future cash

flows, the objective is to use discount rates at which those

liabilities could be settled in an arm's-length transaction.

Estimates of expected future cash flows, if used to estimate fair

value, shall be the best estimate based on reasonable and

supportable assumptions and projections. All available evidence

shall be considered in developing estimates of expected future cash

flows. The weight given to the evidence shall be commensurate with

the extent to which the evidence can be verified objectively. If a

range is estimated for the amount or timing of possible cash flows,

the likelihood of possible outcomes shall be considered in

determining the best estimate of future cash flows;

4. "Fully funded" means that, with respect to any exposure

attributed to a protected cell, the fair value of the protected cell

assets, on the date on which the insurance securitization is

effected, equals or exceeds the maximum possible exposure

attributable to the protected cell with respect to those exposures;

5. "General account" means the assets and liabilities of a

protected cell company other than protected cell assets and

protected cell liabilities;

6. "Indemnity trigger" means a transaction term by which relief

of the issuer's obligation to repay investors is triggered by the

issuer incurring a specified level of losses under its insurance or

reinsurance contracts;

7. "Nonindemnity trigger" means a transaction term by which

relief of the issuer's obligation to repay investors is triggered

solely by some event or condition other than the individual

protected cell company incurring a specified level of losses under

its insurance or reinsurance contracts;

8. "Protected cell" means an identified pool of assets and

liabilities of a protected cell company segregated and insulated by

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means of this act from the remainder of the protected cell company's

assets and liabilities;

9. "Protected cell account" means a specifically identified
ed level of losses under

its insurance or reinsurance contracts;

8. "Protected cell" means an identified pool of assets and

liabilities of a protected cell company segregated and insulated by

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means of this act from the remainder of the protected cell company's

assets and liabilities;

9. "Protected cell account" means a specifically identified

bank or custodial account established by a protected cell company

for the purpose of segregating the protected cell assets of one

protected cell from the protected cell assets of other protected

cells and from the assets of the protected cell company's general

account;

10. "Protected cell assets" means all assets, contract rights

and general intangibles identified with and attributable to a

specific protected cell of a protected cell company;

11. "Protected cell company" means a domestic insurer that has

one or more protected cells;

12. "Protected cell company insurance securitization" means the

issuance of debt instruments, the proceeds from which support the

exposures attributed to the protected cell, by a protected cell

company, where repayment of principal and/or interest to investors

pursuant to the transaction terms is contingent upon the occurrence

or nonoccurrence of an event with respect to which the protected

cell company is exposed to loss under insurance or reinsurance

contracts it has issued;

13. "Protected cell liabilities" means all liabilities and

other obligations identified with and attributable to a specific

protected cell of a protected cell company; and

14. "Receiver" means the Commissioner, where the Commissioner

is acting as a rehabilitator, liquidator or administrative

supervisor of a company, or any person appointed to carry out an

order of rehabilitation or liquidation of a company.