Tex. Insurance Code § 424.207: ABILITY TO DEMONSTRATE HEDGING CHARACTERISTICS AND EFFECTIVENESS.
Where this section sits in the code
- INSURANCE CODE
- TITLE 4. REGULATION OF SOLVENCY
- SUBTITLE B. RESERVES AND INVESTMENTS
- CHAPTER 424. INVESTMENTS FOR CERTAIN INSURERS
- SUBCHAPTER E. RISK CONTROL TRANSACTIONS
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.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.
Collected 2026-08-27T01:47:21Z. Source file · JSON