Vermont § 3461 - Definitions As used in this chapter:

§ 3461. Definitions As used in this chapter:

• (1) “Admitted assets” means assets permitted to be reported as admitted assets on the
  annual statutory financial statement of the insurer for the next preceding year or
  as shown by a current financial statement. (2) “Appraised” or “appraised value” when used in connection with real estate shall refer
  to appraisals made or examined and approved by an insurer or its agents. An insurer
  shall have the right to make one or more renewals or extensions of a loan secured
  by real estate, provided any renewal or extension is based upon a reexamination of
  the facts and upon an appraisal made within three years. (3) “Asset-backed security” means a security or other instrument, excluding a mutual fund,
  evidencing an interest in, or the right to receive payments from, or payable from
  distributions on, an admitted asset, a pool of admitted assets, or specifically divisible
  cash flows that are legally transferred to a trust or another special purpose bankruptcy-remote
  business entity, on the following conditions: (A) The trust or other business entity is established solely for the purpose of acquiring
  specific types of admitted assets or rights to cash flows, issuing securities and
  other instruments representing an interest in or right to receive cash flows from
  those admitted assets or rights, and engaging in activities required to service the
  admitted assets or rights and any credit enhancement or support features held by the
  trust or other business entity. (B) The admitted assets of the trust or other business entity consist solely of interest-bearing
  obligations or other contractual obligations representing the right to receive payment
  from the cash flows from the admitted assets or rights. However, the existence of
  credit enhancements, such as letters of credit or guarantees, or support features
  such as swap agreements, shall not cause a security or other instrument to be ineligible
  as an asset-backed security. (4) “Canada” means Canada, any province of Canada, or any political subdivision of Canada. (5) “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
  called the strike rate or strike price. (6) “Collar” means an agreement to receive payments as the buyer of an option, cap, or
  floor and to make payments as the seller of a different option, cap, or floor. (7) “Counterparty exposure amount” means: (A) The net amount of credit risk attributable to a derivative instrument entered into
  with a business entity other than through a qualified exchange or qualified foreign
  exchange or cleared through a qualified clearinghouse. Such derivative instruments
  are hereinafter referred to as “over-the-counter derivative instruments.” The amount
  of credit risk equals: