Texas Insurance Code

§ 424.207 — ABILITY TO DEMONSTRATE HEDGING CHARACTERISTICS AND EFFECTIVENESS

IN § 424.207Title 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 must be able to demonstrate to the commissioner on request the intended hedging characteristics and continuing effectiveness of a derivative transaction or combination of transactions through:

(1)cash flow testing;

(2)duration analysis; or

(3)other appropriate analysis.

Legislative history

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