Texas § 424.214 LIMITATION ON SALE OF PUT OPTION ON ASSETS.

Texas Statutes

§ 424.214 — LIMITATION ON SALE OF PUT OPTION ON ASSETS.

Texas § 424.214

Code INInsurance Code

This text of Texas § 424.214 (LIMITATION ON SALE OF PUT OPTION ON ASSETS.) is published on Counsel Stack Legal Research, covering Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Tex. Insurance Code Code Ann. § 424.214 (2026).

Text

Sec. 424.214. LIMITATION ON SALE OF PUT OPTION ON ASSETS.

(a)If an income generation transaction is a sale of a put option on assets, the insurer must:

(1)during the entire period the option is outstanding, hold sufficient cash, cash equivalents, or interests in a short-term investment pool to purchase the underlying assets on exercise of the option; and

(2)have the ability to hold the underlying assets in the insurer's portfolio.

(b)If during the entire period the put option is outstanding the total market value of all put options sold by the insurer exceeds two percent of the insurer's assets, the insurer shall set aside, under a custodial or escrow agreement, cash or cash equivalents that have a market value equal to the amount of the insurer's put option obligations in excess of tw

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Sec. 424.214. LIMITATION ON SALE OF PUT OPTION ON ASSETS. (a) If an income generation transaction is a sale of a put option on assets, the insurer must:
(1) during the entire period the option is outstanding, hold sufficient cash, cash equivalents, or interests in a short-term investment pool to purchase the underlying assets on exercise of the option; and
(2) have the ability to hold the underlying assets in the insurer's portfolio.
(b) If during the entire period the put option is outstanding the total market value of all put options sold by the insurer exceeds two percent of the insurer's assets, the insurer shall set aside, under a custodial or escrow agreement, cash or cash equivalents that have a market value equal to the amount of the insurer's put option obligations in excess of two percent of the insurer's assets.