The Law Dictionary

Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.

CONTINGENT SURPLUS NOTES Definition & Legal Meaning

Definition & Citations:

A form of PRELOSS FINANCING where an INSURER or REINSURER issues NOTES to investors via a TRUST if a predefined lossmaking TRIGGER event occurs. The issuance provides funding to compensate for losses sustained. See also CONTINGENT CAPITAL.

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