(1) Where a protected cell company enters into a contract with an undertaking to assume a risk on behalf of a cell ("cell A"), the protected cell company may make arrangements between cell A and another cell of the protected cell company ("cell B") to discharge some or all of any actual liability arising out of the assumption of risk under that contract.

(2) The protected cell company may only make those arrangements during the period -

(a) beginning when the protected cell company enters into the contract; and

(b) ending when it is no longer possible for the undertaking to make a claim under the contract or, if the undertaking has made a claim under the contract, to revise the amount payable in respect of the claim under the terms of the contract.

(3) The arrangements may only enable the protected cell company to discharge some or all of the actual liability referred to in paragraph (1) by -

(a) moving assets held by the protected cell company on behalf of cell A to cell B before the actual liability arises; and