Tex. Ins. Code § 424.212 · Subchapter E. RISK CONTROL TRANSACTIONS
AUTHORITY TO ENTER INTO INCOME GENERATION TRANSACTION.
Text — Current through the 89th 2nd Called Legislative Session, 2025
An insurer may enter into an income generation transaction only if:
(1) as a result of and after making the transaction, the sum of the following amounts does not exceed 10 percent of the insurer's assets:
(A) the aggregate statement value of admitted assets that at the time of the transaction are subject to call or that generate the cash flows for payments the insurer is required to make under caps and floors sold by the insurer and that at the time of the transaction are outstanding under this subchapter;
(B) the statement value of admitted assets underlying derivative instruments that at the time of the transaction are subject to calls sold by the insurer and outstanding under this subchapter; and
(C) the purchase price of assets subject to puts that at the time of the transaction are outstanding under this subchapter; and
(2) the transaction is a sale of:
(A) a call option on assets that meets the requirements of Section 424.213;
(B) a put option on assets that meets the requirements of Section 424.214;
(C) a call option on a derivative instrument, including a swaption, that meets the requirements of Section 424.215; or
(D) a cap or floor that meets the requirements of Section 424.216.
Notes and commentary — not statutory text
History
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.
Source of truth
- Edition
- Current through the 89th 2nd Called Legislative Session, 2025
- Official file
- https://statutes.capitol.texas.gov/Docs/IN/htm/IN.424.htm
- Text hash
- sha256 919c8b38af203b0debde6ff2e78d0a376508d3a0813e36ead8e08c777715e93c
- Composed by
- compose_tx.py 2026-10-05: the Legislative Council's chapter files read in document order; verify_tx.py's independent reading (lxml DOM walk) agrees character for character
This section cites
Provisions in this library that the text above cites, as it prints each citation. A range cited as “ss. 61.13-61.16” links its first and last provisions.
Insurance Code
- Tex. Ins. Code § 424.213LIMITATION ON SALE OF CALL OPTION ON ASSETS.Printed as Section 424.213
- Tex. Ins. Code § 424.214LIMITATION ON SALE OF PUT OPTION ON ASSETS.Printed as Section 424.214
- Tex. Ins. Code § 424.215LIMITATION ON SALE OF CALL OPTION ON DERIVATIVE INSTRUMENT.Printed as Section 424.215
- Tex. Ins. Code § 424.216LIMITATION ON SALE OF CAP OR FLOOR.Printed as Section 424.216
Procedural information only. Not legal advice and not a substitute for the advice of an attorney. Confirm the current text with the official publisher before relying on it.