Amounts recoverable from reinsurance contracts and from special purpose vehicles

(1) The amounts recoverable from reinsurance contracts and from special purpose vehicles are calculated in accordance with sections 75 to 85.
(2) In calculating these recoverable amounts, the time lag between receipt of the amounts and payments to claimants must be taken into account.
(3) The result of this calculation must be adjusted to take account of the expected losses in the event of counterparty default. The adjustment is based on an assessment of the probability of default of the counterparty and the resulting average loss.