{"data":{"id":"us-tx/tex.-insurance-code-425.126","jurisdiction":"us-tx","citation":"Tex. Insurance Code § 425.126","heading":"RISK CONTROL TRANSACTIONS: DERIVATIVE USE PLAN.","body":"(a) Before an insurance company enters into a derivative transaction, the company's board of directors must approve a derivative use plan as part of the investment plan required by Section 425.105.\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 or the assets or liabilities being replicated; and\n(3) require compliance with internal control procedures.\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 425. RESERVES AND INVESTMENTS FOR LIFE INSURANCE COMPANIES AND RELATED ENTITIES","SUBCHAPTER C. AUTHORIZED INVESTMENTS AND TRANSACTIONS FOR CAPITAL STOCK LIFE, HEALTH, AND ACCIDENT INSURERS"],"source_url":"https://statutes.capitol.texas.gov/Docs/IN/htm/IN.425.htm#425.126","current_through":"89th 2nd Called Legislative Session, 2025","vintage":"","retrieved_at":"2026-08-27T01:47:21Z","sha256":"d54fe0ed308b4a27d05a4fa36edaed3e02aa159df0d36c339cfc563dd0c702c7","source_id":"us-tx","stale":false,"prev":"us-tx/tex.-insurance-code-425.125","next":"us-tx/tex.-insurance-code-425.127"},"notice":"GroundRules: Original legal text. Not legal advice."}