reglab/housing_qa huggingface dataset:
TX Ins Code § 425.126 (2021)
2021 Texas Statutes|Insurance Code|Title 4 - Regulation of Solvency|Subtitle B - Reserves and Investments|Chapter 425 - Reserves and Investments for Life Insurance Companies and Related Entities|Subchapter C. Authorized Investments and Transactions for Capital Stock Life, Health, and Accident Insurers|Section 425.126. Risk Control Transactions: Derivative Use Plan

Sec. 425.126.  RISK CONTROL TRANSACTIONS:  DERIVATIVE USE PLAN.  (a)  Before an insurance company enters into a derivative transaction, the company's board of directors must approve a derivative use plan as part of the investment plan required by Section 425.105.(b)  The derivative use plan must:(1)  describe investment objectives and risk constraints, such as counterparty exposure amounts;(2)  define permissible transactions identifying the risks to be hedged or the assets or liabilities being replicated; and(3)  require compliance with internal control procedures.|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|
TX Ins Code § 425.127 (2021)
2021 Texas Statutes|Insurance Code|Title 4 - Regulation of Solvency|Subtitle B - Reserves and Investments|Chapter 425 - Reserves and Investments for Life Insurance Companies and Related Entities|Subchapter C. Authorized Investments and Transactions for Capital Stock Life, Health, and Accident Insurers|Section 425.127. Risk Control Transactions: Internal Control Procedures

Sec. 425.127.  RISK CONTROL TRANSACTIONS:  INTERNAL CONTROL PROCEDURES.  An insurance company that enters into a derivative transaction shall establish written internal control procedures that provide for:(1)  a quarterly report to the board of directors that reviews:(A)  each derivative transaction entered into, outstanding, or closed out;(B)  the results and effectiveness of the derivatives program; and(C)  the credit risk exposure to each counterparty for over-the-counter derivative transactions based on the counterparty exposure amount;(2)  a system for determining whether hedging or replication strategies used have been effective;(3)  a system of regular reports, at least monthly, to management that include:(A)  a description of each derivative transaction entered into, outstanding, or closed out during the period since the last report;(B)  the purpose of each outstanding derivative transaction;(C)  a performance review of the derivative instrument program; and(D)  the counterparty exposure amount for each over-the-counter derivative transaction;(4)  a written authorization that identifies the responsibilities and limitations of authority of each person authorized to effect and maintain derivative transactions; and(5)  appropriate documentation for each transaction, including:(A)  the purpose of the transaction;(B)  the assets or liabilities to which the transaction relates;(C)  the specific derivative instrument used in the transaction;(D)  for an over-the-counter derivative transaction, the name of the counterparty and the counterparty exposure amount; and(E)  for an exchange-traded derivative instrument, the name of the exchange and the name of the firm that handled the transaction.|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|
TX Ins Code § 425.128 (2021)
2021 Texas Statutes|Insurance Code|Title 4 - Regulation of Solvency|Subtitle B - Reserves and Investments|Chapter 425 - Reserves and Investments for Life Insurance Companies and Related Entities|Subchapter C. Authorized Investments and Transactions for Capital Stock Life, Health, and Accident Insurers|Section 425.128. Risk Control Transactions: Oversight by Commissioner

Sec. 425.128.  RISK CONTROL TRANSACTIONS:  OVERSIGHT BY COMMISSIONER.  (a)  An insurance company 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.(b)  Ten days before entering into an initial hedging transaction, an insurance company shall notify the commissioner in writing that:(1)  the company's board of directors has adopted an investment plan that authorizes hedging transactions; and(2)  each hedging transaction will comply with Sections 425.124-425.132.(c)  After providing the notice under Subsection (b), the insurance company may enter into a hedging transaction under Section 425.124 if as a result of and after making the transaction:(1)  the aggregate statement value of all outstanding options other than collars, and of all caps, floors, swaptions, and warrants under Sections 425.124-425.132 not attached to another financial instrument purchased by the company does not exceed 7.5 percent of the company's assets;(2)  the aggregate statement value of all outstanding options other than collars, and of all caps, floors, swaptions, and warrants written by the company under Sections 425.124-425.132 does not exceed three percent of the company's assets; and(3)  the aggregate potential exposure of all outstanding collars, swaps, forwards, and futures entered into or acquired by the company under Sections 425.124-425.132 does not exceed 6.5 percent of the company's assets.(d)  If the hedging transaction does not comply with Sections 425.124-425.132, or if continuing the transaction may create a hazardous financial condition for the insurance company that affects the company's policyholders or creditors or the public, the commissioner may, after notice and an opportunity for a hearing, order the company to take action reasonably necessary to:(1)  remedy a hazardous financial condition; or(2)  prevent an impending hazardous financial condition from occurring.|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|
TX Ins Code § 425.130 (2021)
2021 Texas Statutes|Insurance Code|Title 4 - Regulation of Solvency|Subtitle B - Reserves and Investments|Chapter 425 - Reserves and Investments for Life Insurance Companies and Related Entities|Subchapter C. Authorized Investments and Transactions for Capital Stock Life, Health, and Accident Insurers|Section 425.130. Risk Control Transactions: Limitations on Replication Transactions

Sec. 425.130.  RISK CONTROL TRANSACTIONS:  LIMITATIONS ON REPLICATION TRANSACTIONS.  (a)  An insurance company may enter into a replication transaction only with the prior written approval of the commissioner, and only if:(1)  the company would otherwise be authorized to invest the company's funds under this subchapter in the asset being replicated; and(2)  the asset being replicated is subject to all the provisions of this subchapter relating to the making of investments by the company in that type of asset as if the transaction constituted a direct investment by the company in the replicated asset.(b)  The commissioner may adopt fair and reasonable rules regarding replication transactions to implement this section. |Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|
TX Ins Code § 425.131 (2021)
2021 Texas Statutes|Insurance Code|Title 4 - Regulation of Solvency|Subtitle B - Reserves and Investments|Chapter 425 - Reserves and Investments for Life Insurance Companies and Related Entities|Subchapter C. Authorized Investments and Transactions for Capital Stock Life, Health, and Accident Insurers|Section 425.131. Risk Control Transactions: Trading Requirements

Sec. 425.131.  RISK CONTROL TRANSACTIONS: TRADING REQUIREMENTS.  For purposes of Sections 425.124-425.132, each derivative instrument must be:(1)  traded on a securities exchange;(2)  entered into with, or guaranteed by, a business entity;(3)  issued or written by, or entered into with, the issuer of the underlying interest on which the derivative instrument is based; or(4)  in the case of futures, traded through a broker that is:(A)  registered as a futures commission merchant under the Commodity Exchange Act (7 U.S.C. Section 1 et seq.); or(B)  exempt from that registration under 17 C.F.R. Section 30.10, adopted under the Commodity Exchange Act.|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|
TX Ins Code § 425.132 (2021)
2021 Texas Statutes|Insurance Code|Title 4 - Regulation of Solvency|Subtitle B - Reserves and Investments|Chapter 425 - Reserves and Investments for Life Insurance Companies and Related Entities|Subchapter C. Authorized Investments and Transactions for Capital Stock Life, Health, and Accident Insurers|Section 425.132. Risk Control Transactions: Offsetting Transactions

Sec. 425.132.  RISK CONTROL TRANSACTIONS: OFFSETTING TRANSACTIONS.  (a)  Subject to this section, an insurance company may purchase or sell one or more derivative instruments to wholly or partly offset a derivative instrument previously purchased or sold, without regard to the quantitative limitations of Sections 425.124-425.131.(b)  An offsetting transaction under this section must use the same type of derivative instrument as the derivative instrument being offset.|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|
TX Ins Code § 425.151 (2021)
2021 Texas Statutes|Insurance Code|Title 4 - Regulation of Solvency|Subtitle B - Reserves and Investments|Chapter 425 - Reserves and Investments for Life Insurance Companies and Related Entities|Subchapter C. Authorized Investments and Transactions for Capital Stock Life, Health, and Accident Insurers|Section 425.151. Authorized Investments: Foreign Countries and United States Territories

Sec. 425.151.  AUTHORIZED INVESTMENTS:  FOREIGN COUNTRIES AND UNITED STATES TERRITORIES.  (a)  In addition to the investments within Canada authorized by this subchapter and subject to this section, an insurance company may make investments within another foreign country or a commonwealth, territory, or possession of the United States.(b)  An investment made under this section must be substantially the same type as an investment authorized to be made within the United States or Canada by this subchapter.(c)  The sum of the amount of investments made under this section and the amount of similar investments made within the United States and Canada may not exceed any limitation imposed by Sections 425.109-425.121, 425.124-425.132, and 425.152.(d)  The aggregate amount of an insurance company's investments under this section may not exceed the sum of:(1)  the amount of the company's reserves attributable to insurance business in force in foreign countries, if any, and any additional investments required by a foreign country as a condition of engaging in business in that country; and(2)  20 percent of the company's assets.(e)  An insurance company may not invest more than 10 percent of the company's assets in investments denominated in foreign currency that are not hedged under Sections 425.124-425.132.|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|
TX Ins Code § 425.152 (2021)
2021 Texas Statutes|Insurance Code|Title 4 - Regulation of Solvency|Subtitle B - Reserves and Investments|Chapter 425 - Reserves and Investments for Life Insurance Companies and Related Entities|Subchapter C. Authorized Investments and Transactions for Capital Stock Life, Health, and Accident Insurers|Section 425.152. Authorized Investments: Investments Not Otherwise Specified or Prohibited; Investments Authorized by Other Law

Sec. 425.152.  AUTHORIZED INVESTMENTS:  INVESTMENTS NOT OTHERWISE SPECIFIED OR PROHIBITED; INVESTMENTS AUTHORIZED BY OTHER LAW.  (a)  Subject to this section, an insurance company may make an investment that is not otherwise authorized by this subchapter and that is not specifically prohibited by statute, including any portion of an investment that exceeds the limits imposed by Sections 425.109-425.121, 425.124-425.132, and 425.151.(b)  If any aggregate or individual investment limitation imposed by Sections 425.109-425.121, 425.124-425.132, and 425.151 is exceeded, the excess portion of the investment is considered to be an investment under Subsection (a).(c)  The insurance company has the burden of establishing the value of an investment made under Subsection (a).(d)  The amount of a single investment made by an insurance company under Subsection (a) may not exceed 10 percent of the company's capital and surplus in excess of the statutory minimum capital and surplus applicable to that company.(e)  The aggregate amount of an insurance company's investments under Subsection (a) may not exceed the lesser of:(1)  five percent of the company's assets; or(2)  the amount of the company's capital and surplus that exceeds the amount of statutory minimum capital and surplus applicable to that company.(f)  An insurance company may invest in any investment authorized for an insurance company that is subject to this subchapter by a provision of this code other than this subchapter or by another law of this state.|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|
TX Ins Code § 425.153 (2021)
2021 Texas Statutes|Insurance Code|Title 4 - Regulation of Solvency|Subtitle B - Reserves and Investments|Chapter 425 - Reserves and Investments for Life Insurance Companies and Related Entities|Subchapter C. Authorized Investments and Transactions for Capital Stock Life, Health, and Accident Insurers|Section 425.153. Authorized Investments: Certain Previously Authorized Investments

Sec. 425.153.  AUTHORIZED INVESTMENTS:  CERTAIN PREVIOUSLY AUTHORIZED INVESTMENTS.  (a)  An insurance company may continue to hold an investment held by the company on January 1, 1986, that does not conform to the requirements of the investments authorized by Sections 425.109-425.120, 425.151, and 425.152 if the investment was legally authorized at the time the investment was made or acquired or that the company was authorized to hold immediately before January 1, 1986.(b)  An investment described by Subsection (a) is considered an authorized investment of the insurance company.  A company shall dispose of the investment at the investment's maturity date, if any, or within the time prescribed by the law under which the investment was acquired, if any.(c)  This section does not alter the legal or accounting status of an investment described by Subsection (a).|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|
TX Ins Code § 425.154 (2021)
2021 Texas Statutes|Insurance Code|Title 4 - Regulation of Solvency|Subtitle B - Reserves and Investments|Chapter 425 - Reserves and Investments for Life Insurance Companies and Related Entities|Subchapter C. Authorized Investments and Transactions for Capital Stock Life, Health, and Accident Insurers|Section 425.154. Applicability of Percentage Authorizations and Limitations

Sec. 425.154.  APPLICABILITY OF PERCENTAGE AUTHORIZATIONS AND LIMITATIONS.  The percentage authorizations and limitations established by this subchapter apply only at the time an investment is originally acquired or a transaction is entered into and do not apply to the insurance company or the investment or transaction after that time, except as provided by Section 425.155.|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|
TX Ins Code § 425.155 (2021)
2021 Texas Statutes|Insurance Code|Title 4 - Regulation of Solvency|Subtitle B - Reserves and Investments|Chapter 425 - Reserves and Investments for Life Insurance Companies and Related Entities|Subchapter C. Authorized Investments and Transactions for Capital Stock Life, Health, and Accident Insurers|Section 425.155. Qualification of Investments

Sec. 425.155.  QUALIFICATION OF INVESTMENTS.  (a)  The qualification or disqualification of an investment under one section of this subchapter does not prevent the investment from qualifying, wholly or partly, under another section of this subchapter.  An investment authorized by more than one section may be held under the authorizing section elected by the insurance company.(b)  An investment or transaction qualified under any section of this subchapter at the time the insurance company acquired the investment or entered into the transaction continues to be qualified under that section.(c)  An insurance company may elect to transfer at any time the qualification of an investment, wholly or partly, to the authority of any section of this subchapter under which the investment qualifies at the time of the transfer, regardless of whether the investment originally qualified under that section.(d)  An investment, once qualified under this subchapter, remains qualified notwithstanding any refinancing, restructuring, or modification of the investment, except that an insurance company may not refinance, restructure, or modify an investment to circumvent the requirements of this subchapter.|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|
TX Ins Code § 425.156 (2021)
2021 Texas Statutes|Insurance Code|Title 4 - Regulation of Solvency|Subtitle B - Reserves and Investments|Chapter 425 - Reserves and Investments for Life Insurance Companies and Related Entities|Subchapter C. Authorized Investments and Transactions for Capital Stock Life, Health, and Accident Insurers|Section 425.156. Distributions, Reinsurance, and Merger

Sec. 425.156.  DISTRIBUTIONS, REINSURANCE, AND MERGER.  (a)  This subchapter does not prohibit an insurance company from acquiring additional obligations, securities, or other assets received as a dividend or as a distribution of assets.(b)  This subchapter does not apply to securities, obligations, or other assets accepted incident to the workout, adjustment, restructuring, or similar realization of any kind of previously authorized investment or transaction if the insurance company's board of directors or a committee appointed by the board of directors determines that acceptance of the securities, obligations, or other assets is in the company's best interests.(c)  This subchapter does not apply to assets acquired under a lawful agreement of bulk reinsurance, merger, or consolidation if the assets were legal and authorized investments for the ceding, merged, or consolidated insurance company.(d)  An obligation, security, or other asset acquired as permitted by this section is not required to be qualified under any other section of this subchapter.|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|
TX Ins Code § 425.157 (2021)
2021 Texas Statutes|Insurance Code|Title 4 - Regulation of Solvency|Subtitle B - Reserves and Investments|Chapter 425 - Reserves and Investments for Life Insurance Companies and Related Entities|Subchapter C. Authorized Investments and Transactions for Capital Stock Life, Health, and Accident Insurers|Section 425.157. Aggregate Diversification Requirements

Sec. 425.157.  AGGREGATE DIVERSIFICATION REQUIREMENTS.  (a)  This section takes precedence over Sections 425.109-425.120, 425.122-425.153, and 425.155(a), (b), and (c).(b)  An insurance company's investments in all or any types of securities, loans, obligations, or evidences of indebtedness of a single issuer or borrower, including the issuer's or borrower's majority-owned subsidiaries or parent and the majority-owned subsidiaries of the issuer's or borrower's parent, may not, in the aggregate, exceed five percent of the company's assets.  This subsection does not apply to:(1)  authorized investments that:(A)  are direct obligations of, or are guaranteed by the full faith and credit of, the United States, this state, or a political subdivision of this state; or(B)  are insured by an agency of the United States or this state; or(2)  an investment provided for by Section 425.112 or 425.113.(c)  Except as otherwise provided by this subsection, an insurance company's aggregate investment in real property under Sections 425.119, 425.120, 425.152, and 425.153 may not exceed 33-1/3 percent of the company's assets.  If a company acquires real property under Section 425.119(g) and that acquisition causes the company's aggregate real estate investment to exceed the limitation imposed by this subsection, the company shall, on or before the 10th anniversary of the date the real property is acquired, dispose of a sufficient amount of real property to comply with the applicable limitation.  A company that does not dispose of excess real property as required by this subsection  may not admit as an asset the value of the real property that exceeds the applicable limitation.(d)  If an insurance company's real property acquisitions exceed the limitation imposed by Subsection (c), the company may not acquire additional real property under Section 425.119(b) or (c) or 425.120, 425.152, or 425.153 until the company disposes of the excess real property as specified by Subsection (c).|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|
TX Ins Code § 425.158 (2021)
2021 Texas Statutes|Insurance Code|Title 4 - Regulation of Solvency|Subtitle B - Reserves and Investments|Chapter 425 - Reserves and Investments for Life Insurance Companies and Related Entities|Subchapter C. Authorized Investments and Transactions for Capital Stock Life, Health, and Accident Insurers|Section 425.158. Waiver by Commissioner of Quantitative Limitations

Sec. 425.158.  WAIVER BY COMMISSIONER OF QUANTITATIVE LIMITATIONS.  (a)  The commissioner may waive a quantitative limitation on any investment authorized by Sections 425.109-425.132 and 425.151-425.156 if:(1)  the insurer seeks the waiver before making the investment;(2)  a hearing is held to determine whether the waiver should be granted;(3)  the applicant seeking the waiver establishes that unreasonable or unnecessary loss or harm will result to the company if the commissioner denies the waiver;(4)  the excess investment will not have a material adverse effect on the company; and(5)  the size of the investment is reasonable in relation to the company's assets, capital, surplus, and liabilities.(b)  The commissioner's waiver must be in writing and may treat the resulting excess investment as a nonadmitted asset.|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|
TX Ins Code § 425.159 (2021)
2021 Texas Statutes|Insurance Code|Title 4 - Regulation of Solvency|Subtitle B - Reserves and Investments|Chapter 425 - Reserves and Investments for Life Insurance Companies and Related Entities|Subchapter C. Authorized Investments and Transactions for Capital Stock Life, Health, and Accident Insurers|Section 425.159. Accounting Provisions

Sec. 425.159.  ACCOUNTING PROVISIONS.  (a)  Each insurance company shall maintain reasonable, adequate, and accurate evidence of the company's ownership of the company's assets and investments.(b)  An insurance company shall evidence the company's ownership of governmental or corporate securities as provided by Sections 423.101, 423.102, 423.104(a), 423.105, 423.106, 423.107, and 423.108.(c)  An insurance company shall hold investments, other than investments made as a participation in a partnership or joint venture, only in the company's own name or as otherwise provided by Chapter 423.|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|