ABILITY TO DEMONSTRATE HEDGING CHARACTERISTICS AND EFFECTIVENESS
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff
An insurer must be able to demonstrate to the commissioner on request the intended hedging characteristics and continuing effectiveness of a derivative transaction or combination of transactions through:
(1) cash flow testing;
(2) duration analysis; or
(3) other appropriate analysis.
Official source: Texas Constitution and Statutes. Reproduced from public-domain Texas statutes; confirm against the official source for the current text. Not legal advice.