Sec. 424.207.  ABILITY TO DEMONSTRATE HEDGING CHARACTERISTICS AND EFFECTIVENESS.  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.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.