What Does Catastrophe Equity Put Mean?

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What does Catastrophe Equity Put mean? Read on to discover the definition & meaning of the term Catastrophe Equity Put - to help you better understand the language used in insurance policies.

Catastrophe Equity Put

Catastrophe Equity Put

A contract that allows an insurer to exercise an opportunity, but not the obligation, to exercise an option at a specific index value in the event that losses (the index value) exceed a predetermined level, thus requiring additional equity capital.

We hope the you have a better understanding of the meaning of Catastrophe Equity Put.

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