§ 6901. Definitions. As used in this article: (a) (1) "Financial\nguaranty insurance" means a surety bond, an insurance policy or, when\nissued by an insurer or any person doing an insurance business as\ndefined in paragraph one of subsection (b) of section one thousand one\nhundred one of this chapter, an indemnity contract, and any guaranty\nsimilar to the foregoing types, under which loss is payable, upon proof\nof occurrence of financial loss, to an insured claimant, obligee or\nindemnitee as a result of any of the following events:\n (A) failure of any obligor on or issuer of any debt instrument or\nother monetary obligation (including equity securities guarantied under\na surety bond, insurance policy or indemnity contract) to pay when due\nto be paid by the obligor or scheduled at the time insured to be\nreceived by the holder of the obligation, principal, interest, premium,\ndividend or purchase price of or on, or other amounts due or payable\nwith respect to, such instrument or obligation, when such failure is the\nresult of a financial default or insolvency or, provided that such\npayment source is investment grade, any other failure to make payment,\nregardless of whether such obligation is incurred directly or as\nguarantor by or on behalf of another obligor that has also defaulted;\n (B) changes in the levels of interest rates, whether short or long\nterm or the differential in interest rates between various markets or\nproducts;\n (C) changes in the rate of exchange of currency;\n (D) changes in the value of specific assets or commodities, financial\nor commodity indices, or price levels in general; or\n (E) other events which the superintendent determines are substantially\nsimilar to any of the foregoing.\n (2) Notwithstanding paragraph one of this subsection, "financial\nguaranty insurance" shall not include:\n (A) insurance of any loss resulting from any event described in\nparagraph one of this subsection if the loss is payable only upon the\noccurrence of any of the following, as specified in a surety bond,\ninsurance policy or indemnity contract:\n (i) a fortuitous physical event;\n (ii) failure of or deficiency in the operation of equipment; or\n (iii) an inability to extract or recover a natural resource;\n (B) fidelity and surety insurance as defined in paragraph sixteen of\nsubsection (a) of section one thousand one hundred thirteen of this\nchapter;\n (C) credit insurance as defined in paragraph seventeen of subsection\n(a) of section one thousand one hundred thirteen of this chapter;\n (D) credit unemployment insurance as defined in paragraph twenty-four\nof subsection (a) of section one thousand one hundred thirteen of this\nchapter;\n (E) residual value insurance as defined in paragraph twenty-two of\nsubsection (a) of section one thousand one hundred thirteen of this\nchapter;\n (F) mortgage guaranty insurance as defined in paragraph twenty-three\nof subsection (a) of section one thousand one hundred thirteen of this\nchapter and as permitted to be written by a mortgage guaranty insurer\nunder article sixty-five of this chapter;\n (G) guaranteed investment contracts issued by life insurance companies\nwhich provide that the life insurer itself will make specified payments\nin exchange for specific premiums or contributions;\n (H) indemnity contracts or similar guaranties, to the extent that they\nare not otherwise limited or proscribed by this chapter:\n (i) in which a life insurer or an insurer subject to article\nforty-three of this chapter guaranties its obligations or indebtedness\nor the obligations or indebtedness of a subsidiary (as defined in\nparagraph forty of subsection (a) of section one hundred seven of this\nchapter), other than a financial guaranty insurance corporation,\nprovided that:\n (I) to the extent that any such obligations or indebtedness are backed\nby specific assets, such assets must at all times be owned by the\ninsurer or the subsidiary; and\n (II)
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