Glossary

The Securities Exchange Act of 1934 and its accompanying rules were enacted to protect investors in connection with the trading of securities already issued and outstanding.

A securities insuring agreement is a provision of the SAA Financial Institution Bond No. 24 that provides coverage to banks and other financial institutions for loss resulting from certain types of forgeries and counterfeit securities.

A securities valuation reserve is a reserve required of life insurers to reduce the risks associated with market declines in the values of investments.

Securitization refers to the process whereby periodic cash flows from a given source are pooled, packaged, and sold to investors, usually in the form of bonds.

Securitization of risk is the practice of converting known potential risk scenarios, such as the potential for a hurricane, into a marketable security.

The security holder exclusion is an exclusion in directors and officers liability policy forms for claims brought by stockholders of the organization with the assistance, or on the urging, of any director or officer.

Security requirements are the obligation to provide acceptable financial resources to cover self-insurance or reinsurance liabilities.

Seedsmen's errors and omissions liability insurance is a coverage purchased by seed dealers, growers, wholesalers, and others who grow, sell, or distribute seed.

A segregated cell captive is a special purpose insurer (typically operating as a rental captive) that establishes legally segregated cells or underwriting accounts.

Segregation is a risk control technique involving the separation of loss exposure units so that a loss in one unit is unlikely to occur at the same time as a loss in another unit.