Tex. Insurance Code § 424.215
This is the official text of Tex. Insurance Code § 424.215, part of Texas’s Insurance Code — regulates insurance companies and the policies they sell.
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§ 424.215. LIMITATION ON SALE OF CALL OPTION ON DERIVATIVE INSTRUMENT.
Official statutory text
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.
(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.
Status: in_force · Read it on the official government site
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