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Term Definition Legal instruments

financing arrangement

01/07/2016

THIS DEFINITION ONLY APPLIES TO THE INSURANCE COMPANY - REPORTING PART

means any contract (other than a contract of insurance), agreement, correspondence (including side-letters) or understandings that amend or modify or purport to amend or modify any contract or its operation that has been entered into by the insurer, in respect of contracts of insurance written by the insurer, which when considered together with one or more other contracts or arrangements has the effect of increasing the capital resources of the insurer and which includes:

(1) the transfer of assets to the insurer, the creation of a debt to the insurer or the transfer from the insurer to another party of liabilities to policyholders (or any combination of these); and
(2) either an obligation for the insurer to return (with or without interest) some or all of such assets, a provision for the diminution of such debt or a provision for the recapture of such liabilities, in each case, in specified circumstances.