Underlying interest

{
  "id": "MLC-T-INS-003407",
  "term": "Underlying interest",
  "field": "Insurance and risk management",
  "definition": "The asset, liability or other interest, or combination of them, on which the value of a derivative instrument depends, for example a bond, an interest rate, an index or a currency. State insurance investment laws use the term when defining the derivatives an insurer may enter into, such as swaps, options and futures. It is not the primary insurance layer beneath an excess policy, which is called underlying insurance.",
  "url": "https://mlchart.com/terminology/insurance/underlying-interest/"
}