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Texas Statutes (Last Updated: January 4, 2014) |
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INSURANCE CODE |
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Title 4. REGULATION OF SOLVENCY |
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Subtitle B. RESERVES AND INVESTMENTS |
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Chapter 424. INVESTMENTS FOR CERTAIN INSURERS |
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Subchapter E. RISK CONTROL TRANSACTIONS |
Sec. 424.210. OVERSIGHT BY COMMISSIONER
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(a) Not later than the 10th day before the date an insurer is scheduled to enter into an initial hedging transaction, the insurer shall notify the commissioner in writing that:
(1) the insurer's board of directors has adopted an investment plan that authorizes hedging transactions; and
(2) each hedging transaction will comply with this subchapter.
(b) If a hedging transaction does not comply with this subchapter or if continuing the transaction may create a hazardous financial condition for the insurer that affects the insurer's policyholders or creditors or the public, the commissioner may, after notice and an opportunity for a hearing, order the insurer to take action that the commissioner determines is reasonably necessary to:
(1) remedy a hazardous financial condition; or
(2) prevent an impending hazardous financial condition from occurring.