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Texas · Through 89th 2nd Called Legislative Session, 2025

Tex. Insurance Code § 424.207: ABILITY TO DEMONSTRATE HEDGING CHARACTERISTICS AND EFFECTIVENESS.

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Where this section sits in the code
  1. INSURANCE CODE
  2. TITLE 4. REGULATION OF SOLVENCY
  3. SUBTITLE B. RESERVES AND INVESTMENTS
  4. CHAPTER 424. INVESTMENTS FOR CERTAIN INSURERS
  5. 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

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