Sec. 424.215.  LIMITATION ON SALE OF CALL OPTION ON DERIVATIVE INSTRUMENT.  If an income generation transaction is a sale of a call option on a derivative instrument, including a swaption, the insurer must:
(1)  during the entire period the call option is outstanding, hold, or have a currently exercisable right to acquire, assets generating the cash flow necessary to make any payment for which the insurer is liable under the underlying derivative instrument; and
(2)  have the ability to enter into the underlying derivative transaction for the insurer's portfolio.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.