44-5103 Terms, defined. - Nebraska Statutes

44-5103. Terms, defined.Forpurposes of the Insurers Investment Act:(1) Admitted assets means the investments authorized under the act andstated at values at which they are permitted to be reported in the insurer'sfinancial statement filed under section 44-322, except that admitted assetsdoes not include assets of separate accounts, the investments of which arenot subject to the act;(2) Agent means a national bank, state bank, trust company, or broker-dealerthat maintains an account in its name in a clearing corporation or that isa member of the Federal Reserve System and through which a custodian participatesin a clearing corporation including the Treasury/Reserve Automated Debt EntrySecurities System and Treasury Direct system, except that with respect tosecurities issued by institutions organized or existing under the laws ofa foreign country or securities used to meet deposit requirements pursuantto the laws of a foreign country as a condition of doing business therein,agent may include a corporation that is organized or existing under the lawsof a foreign country and that is legally qualified under those laws to acceptcustody of securities;(3) Business entity means a sole proprietorship, corporation, limitedliability company, association, partnership, limited liability partnership,joint-stock company, joint venture, mutual fund, trust, joint tenancy, orother similar form of business organization, whether organized for profitor not for profit;(4) Clearing corporation means a clearing corporation as defined insubdivision (a)(5) of section 8-102, Uniform Commercial Code, that is organizedfor the purpose of effecting transactions in securities by computerized book-entry,except that with respect to securities issued by institutions organized orexisting under the laws of a foreign country or securities used to meet thedeposit requirements pursuant to the laws of a foreign country as a conditionof doing business therein, clearing corporation may include a corporationthat is organized or existing under the laws of a foreign country and whichis legally qualified under those laws to effect transactions in securitiesby computerized book-entry. Clearing corporation also includes Treasury/ReserveAutomated Debt Entry Securities System and Treasury Direct system;(5) Custodian means:(a) A national bank, state bank, FederalHome Loan Bank, or trust company that shall at all times duringwhich it acts as a custodian pursuant to the Insurers Investment Act be noless than adequately capitalized as determined by the standards adopted by the regulator charged with establishingsuch standards and assessing the solvency of such institutions andthat is regulated by federal or state banking laws or the Federal Home Loan Bank Act oris a member of the Federal Reserve System and that is legally qualified toaccept custody of securities in accordance with the standards set forth below,except that with respect to securities issued by institutions organized orexisting under the laws of a foreign country, or securities used to meet thedeposit requirements pursuant to the laws of a foreign country as a conditionof doing business therein, custodian may include a bank or trust company incorporatedor organized under the laws of a country other than the United States thatis regulated as such by that country's government or an agency thereof thatshall at all times during which it acts as a custodian pursuant to the InsurersInvestment Act be no less than adequately capitalized as determined by thestandards adopted by international banking authorities and that is legallyqualified to accept custody of securities; or(b) A broker-dealer that shall be registered with and subject to jurisdictionof the Securities and Exchange Commission, maintains membership in the SecuritiesInvestor Protection Corporation, and has a tangible net worth equal to orgreater than two hundred fifty million dollars;(6) Custodied securities means securities held by the custodian or itsagent or in a clearing corporation, including the Treasury/Reserve AutomatedDebt Entry Securities System and Treasury Direct system;(7) Direct when used in connection with the term obligation means thatthe designated obligor is primarily liable on the instrument representingthe obligation;(8) Director means the Director of Insurance;(9) Insurer is defined as provided in section 44-103, and unless thecontext otherwise requires, insurer means domestic insurer;(10) Mortgage means a consensual interest created by a real estate mortgage,a trust deed on real estate, or a similar instrument;(11) Obligation means a bond, debenture, note, or other evidence ofindebtedness or a participation, certificate, or other evidence of an interestin any of the foregoing;(12) Policyholders surplus means the amount obtained by subtractingfrom the admitted assets (a) actual liabilities and (b) any and all reserveswhich by law must be maintained. In the case of a stock insurer, the policyholderssurplus also includes the paid-up and issued capital stock;(13) Securities Valuation Office means the Securities Valuation Officeof the National Association of Insurance Commissioners or any successor officeestablished by the National Association of Insurance Commissioners;(14) Security certificate has the same meaning as defined in subdivision(a)(16) of section 8-102, Uniform Commercial Code;(15) State means any state of the United States, the District of Columbia,or any territory organized by Congress;(16) Tangible net worth means shareholders equity, less intangible assets,as reported in the broker-dealer's most recent Annual or Transition Reportpursuant to section 13 or 15(d) of the Securities Exchange Act of 1934, S.E.C.Form 10-K, filed with the Securities and Exchange Commission; and(17) Treasury/Reserve Automated Debt Entry Securities System and TreasuryDirect system mean the book-entry securities systems established pursuantto 5 U.S.C. 301, 12 U.S.C. 391, and 31 U.S.C. 3101 et seq. The operation ofthe systems are subject to 31 C.F.R. part 357 et seq. SourceLaws 1991, LB 237, § 3; Laws 1997, LB 273, § 2; Laws 1999, LB 259, § 11; Laws 2005, LB 119, § 13; Laws 2007, LB117, § 12; Laws 2009, LB192, § 4.