Marla H. Norton, a director at The Bayard Firm, recently spoke to an industry group about the recent amendments to the Delaware insurance code enabling the formation of special purpose financial captive insurance companies ("SPFCs").  Marla's presentation addressed certain key features of new subchapter III to the Delaware captive insurance laws.   The new law permits SPFCs to assume risk from one or more ceding insurers (who may be but need not be affiliated) and enter into capital markets transactions to fund the SPFC's obligations.  Possible applications include life insurers seeking to securitize redundant reserves under Reg XXX, parties engaging in structured life settlements, property and casualty insurers seeking to mitigate against catastrophic risks, or insurers looking to monetize future profits.  This new legislation affords a great deal of flexibility in structuring transactions and builds upon Delaware's existing entity laws and its reputation within the capital markets as a domicile that is favorable for issuers.  Other speakers at the luncheon included Delaware Insurance Commissioner Matt Denn, Delaware Director of Captives Bill White and others who were involved in the public/private collaboration that drafted the new statute.  The luncheon was held on September 6, 2007 at the Penn Club in New York, New York and was sponsored by the Delaware Captive Insurance Association, of which The Bayard Firm is a founding member.  Neil Glassman, a director at The Bayard Firm, was also involved on the drafting committee and is a Board member of DCIA.