Montana § 33-12-109 Credit Risk Attributable To Derivative Statement

Montana Statutes

§ 33-12-109 — Credit Risk Attributable To Derivative Statement

Montana § 33-12-109

Title 33INSURANCE AND INSURANCE COMPANIES

Ch. 12INSURER INVESTMENTS

Part 1General Provisions

This text of Montana § 33-12-109 (Credit Risk Attributable To Derivative Statement) is published on Counsel Stack Legal Research, covering Montana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Mont. Code Ann. § 33-12-109 (2026).

Text

33-12-109 . Credit risk attributable to derivative statement.

(1)The amount of credit risk equals:

(a)the market value of the over-the-counter derivative instrument if the liquidation of the derivative instrument would result in a final cash payment to the insurer; or

(b)zero if the liquidation of the derivative instrument would not result in a final cash payment to the insurer.

(2)If over-the-counter derivative instruments are entered into under a written master agreement that provides for netting of payments owed by the respective parties and the domiciliary jurisdiction of the counterparty is either within the United States or if not within the United States, within a foreign jurisdiction listed in the Purposes and Procedures of the Securities Valuation Office as eligible for nettin

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33-12-109 . Credit risk attributable to derivative statement. (1) The amount of credit risk equals:
(a) the market value of the over-the-counter derivative instrument if the liquidation of the derivative instrument would result in a final cash payment to the insurer; or
(b) zero if the liquidation of the derivative instrument would not result in a final cash payment to the insurer.
(2) If over-the-counter derivative instruments are entered into under a written master agreement that provides for netting of payments owed by the respective parties and the domiciliary jurisdiction of the counterparty is either within the United States or if not within the United States, within a foreign jurisdiction listed in the Purposes and Procedures of the Securities Valuation Office as eligible for netting, the net amount of credit risk must be the greater of zero or the net sum of:
(a) the market value of the over-the-counter derivative instruments entered into under the agreement, the liquidation of which would result in a final cash payment to the insurer; and
(b) the market value of the over-the-counter derivative instruments entered into under the agreement, the liquidation of which would result in a final cash payment by the insurer to the business entity.
(3) For open transactions, market value must be determined at the end of the most recent quarter of the insurer's fiscal year and must be reduced by the market value of acceptable collateral held by the insurer or placed in escrow by one or both parties.