Source: https://development.code.dccouncil.us/dc/council/code/sections/31-1373.11.html
Timestamp: 2019-04-23 20:37:41+00:00

Document:
D.C. Law Library - § 31–1373.11. Derivative transactions.
↪ § 31–1373.11. Derivative transactions.
(2) An insurer shall be able to demonstrate to the Commissioner the intended hedging characteristics and the ongoing effectiveness of the derivative transaction, or combination of transactions, through cash flow testing or other appropriate analyses.
(3) Sales of covered puts on investments that the insurer is permitted to acquire under this chapter if the insurer has escrowed, or entered into a custodian agreement segregating, cash or cash equivalents with a market value equal to the amount of its purchase obligations under the put during the complete term of the put option sold.
(e) An insurer shall include all counterparty exposure amounts in determining compliance with the limitations of § 31-1373.03.
(f) Under regulations promulgated under § 31-1375.01, the Commissioner may approve additional transactions involving the use of derivative instruments in excess of the limits of subsection (c) of this section or for other risk management purposes under regulations promulgated by the Commissioner; provided, that replication transactions shall not be permitted for other than risk management purposes.
This section is referenced in § 31-1371.02, § 31-1371.03, § 31-1373.03, and § 31-1373.10.

References: § 31
 § 31
 § 31
 § 31
 § 31
 § 31
 § 31
 § 31