portfolio insurance

Schweser notes suggest portfolio insurance is not a 3rd party guarantee (book 5-P162-Qu 4)… the name implies it is since it is an insurance. What is it and which LOS talks about it?

3rd party guarantees are for loans. Portfolio insurance is a hedging strategy such as shorting stock index futures to reduce volatility in a stock portfolio. Some also use the term portfolio insurance for brokerage insurance on individual accounts.

Do you recall which LOS? Thanks

THis is outside knowledge to me…