| | | (1)__The amount at which that asset could be bought or | | sold in a current transaction between arms-length, | | willing parties; |
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| | | (2)__The quoted market price for the asset in active | | markets must be used if available; and |
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| | | (3)__If quoted market prices are not available, a value | | determined using the best information available | | considering values of like assets and other valuation | | methods, such as present value of future cash flows, | | historical value of the same or similar assets or | | comparison to values of other asset classes the value | | of which have been historically related to the subject | | asset. |
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| | | 7.__Fully funded.__"Fully funded" means, with respect to a | | special purpose reinsurance vehicle contract, that the fair value | | of the assets held in trust by or on behalf of the special | | purpose reinsurance vehicle under the special purpose reinsurance | | vehicle contract on the date on which the special purpose | | reinsurance vehicle contract is effected, equals or exceeds the | | aggregate limit as defined in this subchapter. |
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| | | 8.__Indemnity trigger.__"Indemnity trigger" means a | | transaction term by which the special purpose reinsurance | | vehicle's obligation to pay the ceding insurer for losses covered | | by a special purpose reinsurance vehicle contract is triggered by | | the ceding insurer incurring a specified level of losses. |
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| | | 9.__Insolvency.__"Insolvency" or "insolvent" means that the | | special purpose reinsurance vehicle is unable to pay its | | obligations when they are due unless the obligations are the | | subject of a bona fide dispute. |
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| | | 10.__Nonindemnity trigger.__"Nonindemnity trigger" means a | | transaction term by which the special purpose reinsurance | | vehicle's obligation to pay the ceding insurer under a special | | purpose reinsurance vehicle contract arises from the occurrence | | or existence of some event or condition other than the ceding | | insurer incurring a specified level of losses under its insurance | | or reinsurance contracts. |
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| | | 11.__Permitted investments.__"Permitted investments" means | | those investments that meet the qualifications under section 795. |
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| | | 12.__Qualified United States financial institution.__ | | "Qualified United States financial institution" means for | | purposes of meeting the requirements of a trustee as specified in |
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