Iowa Administrative Code › Agency 191 - Insurance Division › Insurance Coverage for Pediatric Preventive Services › Chapter 93 - Conduit Derivative Transactions › Rule 191-93.2 - Definitions

Current through Register Vol. 47, No. 3, July 24, 2024
For purposes of this chapter, the following definitions shall
				  apply:
"Affiliate, "
or
"affiliate
				  of"
a specific person, means a person who directly, or indirectly
				  through one or more intermediaries, controls, or is controlled by, or is under
				  common control with, the person specified.
"Aggregated derivative transaction"
means a
				  derivative transaction entered into between any affiliate within an insurance
				  holding company system and a conduit, which transaction may be aggregated by
				  the conduit with other derivative transactions between the conduit and other
				  affiliates within the insurance holding company system and replicated by the
				  conduit with qualified counterparties. An aggregated derivative transaction
				  does not include an individual derivative transaction between an insurer and a
				  conduit subject to Iowa Code section
				  521A5(1).
"b.
				  "
"Conduit"
means a corporation, limited
				  liability company, partnership or other similar form of business organization
				  within an insurance holding company system which engages in the business of
				  conduit derivative transactions.
"Conduit derivative transaction "
means a
				  derivative transaction entered into between a conduit and a qualified
				  counterparty that is not within the conduit's insurance holding company system
				  and that replicates one or more aggregated derivative transactions.
"Control"
means the same as defined in Iowa
				  Code section 521A.I(3).
"Custodian hank"
means the same as defined
				  in Iowa Code section
				  5118(21).
"a"(2).
"Derivative "
means an agreement, option,
				  instrument, or any series or combination of agreements, options, or instruments
				  that provides for either of the following:
1. To make or take delivery of, or assume or relinquish, a
				  specified amount of one or more underlying interests, or to make a cash
				  settlement in lieu of such delivery or relinquishment; or
2. Which has a price, performance, value, or cash flow based
				  primarily upon the actual or expected price, level, performance, value, or cash
				  flow of one or more underlying interests. "Derivative" includes options,
				  warrants not attached to another financial instrument, caps, floors, collars,
				  swaps, forwards, futures and any other agreements, options or instruments
				  substantially similar thereto or any series or combination thereof
"Derivative transaction "
means a
				  transaction based upon a derivative.
"Domestic insurer"
means the same as defined
				  in Iowa Code section 52IA.1(4).
"Insurance holding company system "
means
				  the same as defined in Iowa Code section 52IA.1(5).
"Person"
means the same as defined in Iowa
				  Code section 52IA.1(7).
"Qualified counterparty"
means:
1. A qualified exchange;
2. A transaction entered into with, or guaranteed by, a
				  business entity with an investment grade rating by the National Association of
				  Insurance Commissioners (NAIC) Securities and Valuation Office or by a majority
				  of nationally recognized statistical rating organizations (NRSRO), on the
				  NAIC/NRSRO list, that rate the business entity;
3. A qualified foreign exchange; or
4. A derivative instrument issued or written by, or entered
				  into with, the issuer of the underlying interest on which the derivative
				  instrument is based.
"Qualified exchange"
means the same as
				  defined in rule
				  191-492.
				  (511).
"Qualified foreign exchange"
means the same
				  as defined in rule
				  191-492.
				  (511).