Texas Insurance Code

§ 425.131 — RISK CONTROL TRANSACTIONS: TRADING REQUIREMENTS

IN § 425.131Title 4. REGULATION OF SOLVENCY · Part B. RESERVES AND INVESTMENTS · Ch. 425. RESERVES AND INVESTMENTS FOR LIFE INSURANCE · Art. C. AUTHORIZED INVESTMENTS AND TRANSACTIONS FOR CAPITAL STOCK LIFE, HEALTH, AND ACCIDENT INSURERS

Statute text

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For purposes of Sections 425.124-425.132, each derivative instrument must be:

(1)traded on a securities exchange;

(2)entered into with, or guaranteed by, a business entity;

(3)issued or written by, or entered into with, the issuer of the underlying interest on which the derivative instrument is based; or

(4)in the case of futures, traded through a broker that is:

(A)registered as a futures commission merchant under the Commodity Exchange Act (7 U.S.C. Section 1 et seq.); or

…

Legislative history

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