760 IAC 1-82-9 "Primary security" defined

Sec. 9. "Primary security" means the following forms of security: (1) Cash meeting the requirements of IC 27-6-10.1-3(A). (2) Securities listed by the Securities Valuation Office meeting the requirements of IC 27-6-10.1-3(B), but excluding a synthetic letter of credit, a contingent note, a credit-linked note, or other similar security that operates in a manner similar to a letter of credit, and excluding any securities issued by the ceding insurer or any of its affiliates. (3) For security held in connection with funds-withheld and modified coinsurance reinsurance treaties: (A) commercial loans in good standing of CM3 quality and higher; (B) policy loans; and (C) derivatives acquired in the normal course and used to support and hedge liabilities pertaining to the actual risks in the policies ceded under the reinsurance treaty.