Tex. Ins. Code § 424.215 · Subchapter E. RISK CONTROL TRANSACTIONS
LIMITATION ON SALE OF CALL OPTION ON DERIVATIVE INSTRUMENT.
Text — Current through the 89th 2nd Called Legislative Session, 2025
If an income generation transaction is a sale of a call option on a derivative instrument, including a swaption, the insurer must:
(1) during the entire period the call option is outstanding, hold, or have a currently exercisable right to acquire, assets generating the cash flow necessary to make any payment for which the insurer is liable under the underlying derivative instrument; and
(2) have the ability to enter into the underlying derivative transaction for the insurer's portfolio.
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 4c8b619e88d6930571c2fd15597c67cd9eb050ab71e7f180128cc7d15ef66470
- 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 § 424.215. Each shows the citation as that text prints it.
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.