Texas Insurance Code - Section 424.205. Derivative Use Plan
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§ 424.205. DERIVATIVE USE PLAN. (a) Before an insurer
enters into a derivative transaction, the insurer's board of
directors must approve a derivative use plan as part of the
insurer's investment plan otherwise required by law.
(b) The derivative use plan must:
(1) describe investment objectives and risk
constraints, such as counterparty exposure amounts;
(2) define permissible transactions, identifying the
risks to be hedged and the assets or liabilities being replicated;
and
(3) require compliance with the insurer's internal
control procedures established under Section 424.206.
Added by Acts 2005, 79th Leg., ch. 727, § 1, eff. April 1, 2007.
Section: 424.155 424.156 424.157 424.201 424.202 424.203 424.204 424.205 424.206 424.207 424.208 424.209 424.210 424.211 424.212
Last modified: August 10, 2007
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