§ 38.2-1428. Hedging transactions
A domestic insurer may effect or maintain bona fide hedging transactions pertaining to securities otherwise eligible for investment under §§ 38.2-1415 through 38.2-1427 and 38.2-1433, including, but not limited to: (i) financial futures contracts, warrants, options, calls and other rights to purchase, and (ii) puts and other rights to require another person to purchase such securities. The contracts, options, calls, puts, and rights shall be traded on a commodity exchange regulated under the Commodity Exchange Act, as amended, or on a securities exchange or on an over-the-counter market regulated under the Securities Exchange Act of 1934, as amended. For purposes of this section, a "bona fide hedging transaction" means a purchase or sale of a contract, warrant, option, call, put or right entered into for the purpose of (a) minimizing interest rate or foreign currency risks in respect of obligations on insurance policies or contracts supported by securities held by the insurer or (b) offsetting changes in the market values or yield rates of securities held by the insurer, currency risks or other items that qualify for hedge accounting.
(1983, c. 457, § 38.1-217.31; 1985, c. 36; 1986, c. 562; 2001, c. 387.)
Sections: Previous 38.2-1424 38.2-1425 38.2-1426 38.2-1427 38.2-1427.1 38.2-1427.2 38.2-1427.3 38.2-1428 38.2-1429 38.2-1430 38.2-1431 38.2-1432 38.2-1433 38.2-1434 38.2-1435 NextLast modified: April 16, 2009