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Questions & Answers > General > Are there any other restrictions on the policies and other liabilities allocated to the Segregated Account?

The following questions and answers are provided to the general public for informational purposes only. They are not legal documents and do not bind the Segregated Account of Ambac Assurance Corporation, the Office of the Commissioner of Insurance, or the Rehabilitator to any position or interpretation of the rehabilitation court's orders in these proceedings, now or in the future. Interested parties should review the court documents available on this site and consult their own legal counsel with any questions they may have regarding any effect this rehabilitation proceeding may have on their legal rights and obligations.

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Yes. The rehabilitation court granted an Order for Temporary Injunctive Relief that applies to the policies and liabilities allocated to the Segregated Account. Due to the complex nature of the credit derivatives, RMBS and other structured finance transactions which are now insured by the Segregated Account, we are unable to address in this Q&A; precisely how the injunctive relief granted affects any particular person or entity. We recommend that all interested persons and entities review the Order for Temporary Injunctive Relief to determine the impact of the injunctive relief on their individual rights and obligations. However, generally speaking, the key temporary injunctions:

  • prevent policyholders and/or counterparties from terminating or collecting on policies or contracts allocated to the Segregated Account, regardless of any language in those policies or contracts that would otherwise permit or require early termination.
  • prevent policyholders and/or counterparties from asserting market quotation, mark-to-market loss or “closeout amount” claims against AAC or the Segregated Account.
  • preserve the rights of the Segregated Account under any credit derivatives, RMBS and other structured finance transactions which are now insured by the Segregated Account.
  • prevent all persons and entities from willfully failing to take any action that the Segregated Account directs to be taken pursuant to its rights under policies or contracts allocated to the Segregated Account, or any related agreements.
  • prevent all persons and entities from withholding or failing to pay premiums or other payments owed to the Segregated Account or AAC in connection with policies or contracts allocated to the Segregated Account.

Last updated on March 27, 2010 by Ambac Policyholders Administrator