Sec. 424.213. LIMITATION ON SALE OF CALL OPTION ON ASSETS. If an income generation transaction is a sale of a call option on assets, the insurer must, during the entire period the option is outstanding, hold, or have a currently exercisable right to acquire, the underlying assets.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.
Structure Texas Statutes
Title 4 - Regulation of Solvency
Subtitle B - Reserves and Investments
Chapter 424 - Investments for Certain Insurers
Subchapter E. Risk Control Transactions
Section 424.202. Risk Control Transactions Authorized
Section 424.203. Notice of Intent to Engage in Risk Control Transactions Required
Section 424.204. Trading Requirements for Derivative Instruments
Section 424.205. Derivative Use Plan
Section 424.206. Internal Control Procedures
Section 424.207. Ability to Demonstrate Hedging Characteristics and Effectiveness
Section 424.208. Offsetting Transactions
Section 424.209. Inclusion of Counterparty Exposure Amounts
Section 424.210. Oversight by Commissioner
Section 424.211. Authority to Enter Into Hedging Transaction
Section 424.212. Authority to Enter Into Income Generation Transaction
Section 424.213. Limitation on Sale of Call Option on Assets
Section 424.214. Limitation on Sale of Put Option on Assets
Section 424.215. Limitation on Sale of Call Option on Derivative Instrument
Section 424.216. Limitation on Sale of Cap or Floor