{"data":{"id":"us-tx/tex.-insurance-code-424.205","jurisdiction":"us-tx","citation":"Tex. Insurance Code § 424.205","heading":"DERIVATIVE USE PLAN.","body":"(a) Before an insurer enters into a derivative transaction, the insurer's board of directors must approve a derivative use plan as part of the insurer's investment plan otherwise required by law.\n(b) The derivative use plan must:\n(1) describe investment objectives and risk constraints, such as counterparty exposure amounts;\n(2) define permissible transactions, identifying the risks to be hedged and the assets or liabilities being replicated; and\n(3) require compliance with the insurer's internal control procedures established under Section 424.206.\nAdded by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.","path":["INSURANCE CODE","TITLE 4. REGULATION OF SOLVENCY","SUBTITLE B. RESERVES AND INVESTMENTS","CHAPTER 424. INVESTMENTS FOR CERTAIN INSURERS","SUBCHAPTER E. RISK CONTROL TRANSACTIONS"],"source_url":"https://statutes.capitol.texas.gov/Docs/IN/htm/IN.424.htm#424.205","current_through":"89th 2nd Called Legislative Session, 2025","vintage":"","retrieved_at":"2026-08-27T01:47:21Z","sha256":"8e87c3c92c2cca6fb0462e52974b346f1392dcc720506800485cf921fdfe3f60","source_id":"us-tx","stale":false,"prev":"us-tx/tex.-insurance-code-424.204","next":"us-tx/tex.-insurance-code-424.206"},"notice":"GroundRules: Original legal text. Not legal advice."}