Texas Insurance Code - Section 424.211. Authority To Enter Into Hedging Transaction
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§ 424.211. AUTHORITY TO ENTER INTO HEDGING
TRANSACTION. After providing notice under Section 424.210, an
insurer may enter into a hedging transaction under this subchapter
if as a result of and after making the transaction:
(1) the aggregate statement value of all outstanding
caps, floors, options, swaptions, and warrants not attached to
another financial instrument purchased by the insurer under this
subchapter, other than a collar, does not exceed 7.5 percent of the
insurer's assets;
(2) the aggregate statement value of all outstanding
caps, floors, options, swaptions, and warrants written by the
insurer under this subchapter, other than a collar, does not exceed
three percent of the insurer's assets; and
(3) the aggregate potential exposure of all
outstanding collars, forwards, futures, and swaps entered into or
acquired by the insurer under this subchapter does not exceed 6.5
percent of the insurer's assets.
Added by Acts 2005, 79th Leg., ch. 727, § 1, eff. April 1, 2007.
Section: 424.204 424.205 424.206 424.207 424.208 424.209 424.210 424.211 424.212 424.213 424.214 424.215 424.216 424.217 424.218
Last modified: August 10, 2007
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