Texas Insurance Code

§ 424.206 — INTERNAL CONTROL PROCEDURES

IN § 424.206Title 4. REGULATION OF SOLVENCY · Part B. RESERVES AND INVESTMENTS · Ch. 424. INVESTMENTS FOR CERTAIN INSURERS · Art. E. RISK CONTROL TRANSACTIONS

Statute text

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An insurer that enters into a derivative transaction shall establish written internal control procedures that require:

(1)a quarterly report to the board of directors that reviews:

(A)each derivative transaction entered into, outstanding, or closed out;

(B)the results and effectiveness of the derivatives program; and

(C)the credit risk exposure to each counterparty for over-the-counter derivative transactions based on the counterparty exposure amount;

(2)a system for determining whether hedging or replication strategies used by the insurer have been effective;

…

Legislative history

Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.