California Insurance Code

§ 1211

INS § 1211 Effective Jan 1, 2004Div. 1 · Part 2 · Ch. 2 · Art. 4.6

Statute text

(a)For the purposes of this section the following definitions shall apply:

(1)“Aggregate counterparty exposure” means the sum of the aggregate statement value options, swaptions, caps, floors, and warrants purchased, and the aggregate potential exposure of collars, swaps, forwards, and futures entered into.

(2)“Cap” means an agreement obligating the seller to make payments to the buyer with each payment based on the amount by which a reference price or level or the performance or value of one or more underlying interests exceeds a predetermined number, sometimes referred to as the strike rate or strike price.

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Legislative history

Amended by Stats. 2003, Ch. 62, Sec. 200. Effective January 1, 2004.