Texas Insurance Code - Section 425.126. Risk Control Transactions: Derivative Use Plan
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§ 425.126. RISK CONTROL TRANSACTIONS: DERIVATIVE USE
PLAN. (a) Before an insurance company enters into a derivative
transaction, the company' s board of directors must approve a
derivative use plan as part of the investment plan required by
Section 425.105.
(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 or the assets or liabilities being replicated;
and
(3) require compliance with internal control
procedures.
Added by Acts 2005, 79th Leg., ch. 727, § 1, eff. April 1, 2007.
Section: 425.119 425.120 425.121 425.122 425.123 425.124 425.125 425.126 425.127 425.128 425.129 425.130 425.131 425.132 425.151
Last modified: August 11, 2007
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