A debt instrument accounted for as equity under statutory accounting rules, used when investors loan surplus to an insurer rather than posting a letter of credit. (Also referred to as a su [..]

A debt instrument issued by an insurer for which the obligation to repay principal is conditioned upon the maintenance of the insurer's statutory surplus above a stated level. Generally, such an instrument qualifies as regulatory capital.

Generally an unsecured interest-bearing note carried as an equity contribution (normally made by shareholders or affiliates) to prevent a surplus deficiency by the borrowing company. The debenture is [..]