Tex. Ins. Code § 424.214 · Subchapter E. RISK CONTROL TRANSACTIONS
LIMITATION ON SALE OF PUT OPTION ON ASSETS.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(a) If an income generation transaction is a sale of a put option on assets, the insurer must:
(1) during the entire period the option is outstanding, hold sufficient cash, cash equivalents, or interests in a short-term investment pool to purchase the underlying assets on exercise of the option; and
(2) have the ability to hold the underlying assets in the insurer's portfolio.
(b) If during the entire period the put option is outstanding the total market value of all put options sold by the insurer exceeds two percent of the insurer's assets, the insurer shall set aside, under a custodial or escrow agreement, cash or cash equivalents that have a market value equal to the amount of the insurer's put option obligations in excess of two percent of the insurer's assets.
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 253763650a1c34625f3690df89414c2a375877daea0d344fa4e3186ac12a1f1b
- 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
Cited by 1 provision
Provisions in this library whose text cites Tex. Ins. Code § 424.214. Each shows the citation as that text prints it.
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