Texas § IN.424.212 - AUTHORITY TO ENTER INTO INCOME GENERATION TRANSACTION
Full text of Texas The Texas Constitution § IN.424.212 — AUTHORITY TO ENTER INTO INCOME GENERATION TRANSACTION, with citation guidance and answers to common questions.
§ IN.424.212. AUTHORITY TO ENTER INTO INCOME GENERATION TRANSACTION
AUTHORITY TO ENTER INTO INCOME GENERATION TRANSACTION. An insurer may enter into an income generation transaction only if: (1) as a result of and after making the transaction, the sum of the following amounts does not exceed 10 percent of the insurer's assets: (A) the aggregate statement value of admitted assets that at the time of the transaction are subject to call or that generate the cash flows for payments the insurer is required to make under caps and floors sold by the insurer and that at the time of the transaction are outstanding under this subchapter; (B) the statement value of admitted assets underlying derivative instruments that at the time of the transaction are subject to calls sold by the insurer and outstanding under this subchapter; and (C) the purchase price of assets subject to puts that at the time of the transaction are outstanding under this subchapter; and (2) the transaction is a sale of: (A) a call option on assets that meets the requirements of Section 424.213 ; (B) a put option on assets that meets the requirements of Section 424.214 ; (C) a call option on a derivative instrument, including a swaption, that meets the requirements of Section 424.215 ; or (D) a cap or floor that meets the requirements of Section 424.216 . Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017 ), Sec. 1, eff. April 1, 2007.
Source: official Texas text · Last verified 2026-08-27
Frequently Asked Questions About Texas § IN.424.212
What does The Texas Constitution § IN.424.212 cover?
Section IN.424.212 ("AUTHORITY TO ENTER INTO INCOME GENERATION TRANSACTION") is part of the The Texas Constitution, the codified statutory law of Texas. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Texas § IN.424.212?
A common citation format is "The Texas Constitution § IN.424.212" (Texas). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Texas law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Texas official source linked on this page or consult a licensed Texas attorney.
How does Texas § IN.424.212 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Texas can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Texas.