Host Contract

Host Contract - A Host Contract is an insurance policy contract, lease and purchase contract. Known as the other financial instrument such a debt and equity, it a combination with the embedded derivative to create a new hybrid security. It is a non-derivative instrument used in business. The policyholder directs certain insurance premium investments in the investment account that includes equities. The investment account will also include bonds. Held in a separate account that is unique from the insurer's general account assets. This is not a derivative because of the unique attributes of the traditional variable annuity contracts issued by the insurance company.