As used in this Part, unlessthe context requires otherwise, the following terms have the followingmeanings:
(1) "Domesticinsurer" means an insurer domiciled in the State of North Carolina.
(2) "Fairvalue" means the amount at which that asset (or liability) could be bought(or incurred) or sold (or settled) in a current transaction between willingparties, that is, other than in a forced or liquidation sale. Quoted markedprices in active markets are the best evidence of fair value and shall be usedas the basis for the measurement, if available. If a quoted market price isavailable, the fair value is the product of the number of trading units timesmarket price. If quoted market prices are not available, the estimate of fair valueshall be based on the best information available. The estimate of fair valueshall consider prices for similar assets and liabilities and the results ofvaluation techniques to the extent available in the circumstances. Examples ofvaluation techniques include the present value of estimated expected futurecash flows using a discount rate commensurate with the risks involved, option‑pricingmodels, matrix pricing, option‑adjusted spread models, and fundamentalanalysis. Valuation techniques for measuring financial assets and liabilitiesand servicing assets and liabilities shall be consistent with the objective ofmeasuring fair value. Those techniques shall incorporate assumptions thatmarket participants would use in their estimates of values, future revenues,and future expenses, including assumptions about interest rates, default,prepayment, and volatility. In measuring financial liabilities and servicingliabilities at fair value by discounting estimated future cash flows, anobjective is to use discount rates at which those liabilities could be settledin an arm's‑length transaction. Estimates of expected future cash flows,if used to estimate fair value, shall be the best estimate based on reasonableand supportable assumptions and projections. All available evidence shall beconsidered in developing estimates of expected future cash flows. The weightgiven to the evidence shall be commensurate with the extent to which theevidence can be verified objectively. If a range is estimated for either the amountor timing of possible cash flows, the likelihood of possible outcomes shall beconsidered in determining the best estimate of future cash flows.
(3) "Fullyfunded" means that, with respect to any exposure attributed to a protectedcell, the market value of the protected cell assets, on the date on which theinsurance securitization is effected, equals or exceeds the maximum possibleexposure attributable to the protected cell with respect to the exposures.
(4) "Generalaccount" means the assets and liabilities of a protected cell companyother than protected cell assets and protected cell liabilities.
(5) "Indemnitytrigger" means a transaction term by which relief of the issuer'sobligation to repay investors is triggered by its incurring a specified levelof losses under its insurance or reinsurance contracts.
(6) "Nonindemnitytrigger" means a transaction term by which relief of the issuer'sobligation to repay investors is triggered solely by some event or conditionother than the individual protected cell company incurring a specified level oflosses under its insurance or reinsurance contracts.
(7) "Protectedcell" means an identified pool of assets and liabilities of a protectedcell company segregated and insulated by means of this Chapter from theremainder of the protected cell company's assets and liabilities.
(8) "Protected cellaccount" means a specifically identified bank or custodial accountestablished by a protected cell company for the purpose of segregating theprotected cell assets of one protected cell from the protected cell assets ofother protected cells and from the assets of the protected cell company'sgeneral account.
(9) "Protected cellassets" means all assets, contract rights, and general intangibles,identified with and attributable to a specific protected cell of a protectedcell company.
(10) "Protected cellcompany" means a domestic insurer that has one or more protected cells.
(11) "Protected cellcompany insurance securitization" means the issuance of debt instruments, theproceeds from which support the exposures attributed to the protected cell, bya protected cell company where repayment of principal or interest, or both, toinvestors under the transaction terms is contingent upon the occurrence ornonoccurrence of an event with respect to which the protected cell company isexposed to loss under insurance or reinsurance contracts it has issued.
(12) "Protected cellliabilities" means all liabilities and other obligations identified withand attributable to a specific protected cell of a protected cell company. (2001‑223, s. 25.)
As used in this Part, unlessthe context requires otherwise, the following terms have the followingmeanings:
(1) "Domesticinsurer" means an insurer domiciled in the State of North Carolina.
(2) "Fairvalue" means the amount at which that asset (or liability) could be bought(or incurred) or sold (or settled) in a current transaction between willingparties, that is, other than in a forced or liquidation sale. Quoted markedprices in active markets are the best evidence of fair value and shall be usedas the basis for the measurement, if available. If a quoted market price isavailable, the fair value is the product of the number of trading units timesmarket price. If quoted market prices are not available, the estimate of fair valueshall be based on the best information available. The estimate of fair valueshall consider prices for similar assets and liabilities and the results ofvaluation techniques to the extent available in the circumstances. Examples ofvaluation techniques include the present value of estimated expected futurecash flows using a discount rate commensurate with the risks involved, option‑pricingmodels, matrix pricing, option‑adjusted spread models, and fundamentalanalysis. Valuation techniques for measuring financial assets and liabilitiesand servicing assets and liabilities shall be consistent with the objective ofmeasuring fair value. Those techniques shall incorporate assumptions thatmarket participants would use in their estimates of values, future revenues,and future expenses, including assumptions about interest rates, default,prepayment, and volatility. In measuring financial liabilities and servicingliabilities at fair value by discounting estimated future cash flows, anobjective is to use discount rates at which those liabilities could be settledin an arm's‑length transaction. Estimates of expected future cash flows,if used to estimate fair value, shall be the best estimate based on reasonableand supportable assumptions and projections. All available evidence shall beconsidered in developing estimates of expected future cash flows. The weightgiven to the evidence shall be commensurate with the extent to which theevidence can be verified objectively. If a range is estimated for either the amountor timing of possible cash flows, the likelihood of possible outcomes shall beconsidered in determining the best estimate of future cash flows.
(3) "Fullyfunded" means that, with respect to any exposure attributed to a protectedcell, the market value of the protected cell assets, on the date on which theinsurance securitization is effected, equals or exceeds the maximum possibleexposure attributable to the protected cell with respect to the exposures.
(4) "Generalaccount" means the assets and liabilities of a protected cell companyother than protected cell assets and protected cell liabilities.
(5) "Indemnitytrigger" means a transaction term by which relief of the issuer'sobligation to repay investors is triggered by its incurring a specified levelof losses under its insurance or reinsurance contracts.
(6) "Nonindemnitytrigger" means a transaction term by which relief of the issuer'sobligation to repay investors is triggered solely by some event or conditionother than the individual protected cell company incurring a specified level oflosses under its insurance or reinsurance contracts.
(7) "Protectedcell" means an identified pool of assets and liabilities of a protectedcell company segregated and insulated by means of this Chapter from theremainder of the protected cell company's assets and liabilities.
(8) "Protected cellaccount" means a specifically identified bank or custodial accountestablished by a protected cell company for the purpose of segregating theprotected cell assets of one protected cell from the protected cell assets ofother protected cells and from the assets of the protected cell company'sgeneral account.
(9) "Protected cellassets" means all assets, contract rights, and general intangibles,identified with and attributable to a specific protected cell of a protectedcell company.
(10) "Protected cellcompany" means a domestic insurer that has one or more protected cells.
(11) "Protected cellcompany insurance securitization" means the issuance of debt instruments, theproceeds from which support the exposures attributed to the protected cell, bya protected cell company where repayment of principal or interest, or both, toinvestors under the transaction terms is contingent upon the occurrence ornonoccurrence of an event with respect to which the protected cell company isexposed to loss under insurance or reinsurance contracts it has issued.
(12) "Protected cellliabilities" means all liabilities and other obligations identified withand attributable to a specific protected cell of a protected cell company. (2001‑223, s. 25.)
As used in this Part, unlessthe context requires otherwise, the following terms have the followingmeanings:
(1) "Domesticinsurer" means an insurer domiciled in the State of North Carolina.
(2) "Fairvalue" means the amount at which that asset (or liability) could be bought(or incurred) or sold (or settled) in a current transaction between willingparties, that is, other than in a forced or liquidation sale. Quoted markedprices in active markets are the best evidence of fair value and shall be usedas the basis for the measurement, if available. If a quoted market price isavailable, the fair value is the product of the number of trading units timesmarket price. If quoted market prices are not available, the estimate of fair valueshall be based on the best information available. The estimate of fair valueshall consider prices for similar assets and liabilities and the results ofvaluation techniques to the extent available in the circumstances. Examples ofvaluation techniques include the present value of estimated expected futurecash flows using a discount rate commensurate with the risks involved, option‑pricingmodels, matrix pricing, option‑adjusted spread models, and fundamentalanalysis. Valuation techniques for measuring financial assets and liabilitiesand servicing assets and liabilities shall be consistent with the objective ofmeasuring fair value. Those techniques shall incorporate assumptions thatmarket participants would use in their estimates of values, future revenues,and future expenses, including assumptions about interest rates, default,prepayment, and volatility. In measuring financial liabilities and servicingliabilities at fair value by discounting estimated future cash flows, anobjective is to use discount rates at which those liabilities could be settledin an arm's‑length transaction. Estimates of expected future cash flows,if used to estimate fair value, shall be the best estimate based on reasonableand supportable assumptions and projections. All available evidence shall beconsidered in developing estimates of expected future cash flows. The weightgiven to the evidence shall be commensurate with the extent to which theevidence can be verified objectively. If a range is estimated for either the amountor timing of possible cash flows, the likelihood of possible outcomes shall beconsidered in determining the best estimate of future cash flows.
(3) "Fullyfunded" means that, with respect to any exposure attributed to a protectedcell, the market value of the protected cell assets, on the date on which theinsurance securitization is effected, equals or exceeds the maximum possibleexposure attributable to the protected cell with respect to the exposures.
(4) "Generalaccount" means the assets and liabilities of a protected cell companyother than protected cell assets and protected cell liabilities.
(5) "Indemnitytrigger" means a transaction term by which relief of the issuer'sobligation to repay investors is triggered by its incurring a specified levelof losses under its insurance or reinsurance contracts.
(6) "Nonindemnitytrigger" means a transaction term by which relief of the issuer'sobligation to repay investors is triggered solely by some event or conditionother than the individual protected cell company incurring a specified level oflosses under its insurance or reinsurance contracts.
(7) "Protectedcell" means an identified pool of assets and liabilities of a protectedcell company segregated and insulated by means of this Chapter from theremainder of the protected cell company's assets and liabilities.
(8) "Protected cellaccount" means a specifically identified bank or custodial accountestablished by a protected cell company for the purpose of segregating theprotected cell assets of one protected cell from the protected cell assets ofother protected cells and from the assets of the protected cell company'sgeneral account.
(9) "Protected cellassets" means all assets, contract rights, and general intangibles,identified with and attributable to a specific protected cell of a protectedcell company.
(10) "Protected cellcompany" means a domestic insurer that has one or more protected cells.
(11) "Protected cellcompany insurance securitization" means the issuance of debt instruments, theproceeds from which support the exposures attributed to the protected cell, bya protected cell company where repayment of principal or interest, or both, toinvestors under the transaction terms is contingent upon the occurrence ornonoccurrence of an event with respect to which the protected cell company isexposed to loss under insurance or reinsurance contracts it has issued.
(12) "Protected cellliabilities" means all liabilities and other obligations identified withand attributable to a specific protected cell of a protected cell company. (2001‑223, s. 25.)
