Terms Used In Ohio Code > Chapter 3906 - Alternate Investment Law

• Annual financial statement: means an insurer's statutorily required financial statement under the insurer's respective authorizing chapter of the Revised Code. See Ohio Code 3906.01
• Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
• Bond: includes an undertaking. See Ohio Code 1.02
• Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
• Covered: means that an insurer owns, or can immediately acquire through the exercise of options, warrants, or conversion rights already owned, the underlying interest in order to fulfill or secure its obligation under the option, cap, or floor it has written. See Ohio Code 3906.01
• Derivative transaction: means a transaction involving the use of one or more derivative instruments. See Ohio Code 3906.01
• Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
• Hedging transaction: means a derivative transaction that is entered into and maintained to reduce either of the following:

  (1) The risk of economic loss due to a change in the value, yield, price, cash flow, or quantity of assets or liabilities that the insurer has acquired or incurred or anticipates acquiring or incurring;

  (2) The currency exchange rate risk or the degree of exposure as to assets or liabilities that an insurer has acquired or incurred or anticipates acquiring or incurring. See Ohio Code 3906.01

• in writing: includes any representation of words, letters, symbols, or figures; this provision does not affect any law relating to signatures. See Ohio Code 1.59
• Income generation: means a derivative transaction involving the writing of covered options, caps, or floors that is intended to generate income or enhance return. See Ohio Code 3906.01
• Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. ^{Source: OCC}
• Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
• Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
• Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
• Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
• Person: includes an individual, corporation, business trust, estate, trust, partnership, and association. See Ohio Code 1.59
• Property: means real and personal property. See Ohio Code 1.59
• Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
• Replication transaction: means a derivative transaction that is intended to replicate the performance of one or more assets that an insurer is authorized to acquire under this chapter. See Ohio Code 3906.01
• Rule: includes regulation. See Ohio Code 1.59
• Securities valuation office: means the securities valuation office of the national association of insurance commissioners or any successor office. See Ohio Code 3906.01
• Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
• state: means the state of Ohio. See Ohio Code 1.59
• Statute: A law passed by a legislature.
• Subpoena: A command to a witness to appear and give testimony.
• Superintendent: means the superintendent of insurance. See Ohio Code 3906.01
• United States: includes all the states. See Ohio Code 1.59