Authority: IC 27-6-10.1-5

Affected: IC 27-6-10.1-3

Sec. 9. "Primary security" means the following forms of security:

1. (1) Cash meeting the requirements of IC 27-6-10.1-3(A).
2. (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. (3) For security held in connection with funds-withheld and modified coinsurance reinsurance treaties:

   1. (A) commercial loans in good standing of CM3 quality and higher;
   2. (B) policy loans; and
   3. (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.

(Department of Insurance; 760 IAC 1-82-9; filed Feb 13, 2023, 2:47 p.m.: 20230315-IR-760220245FRA)