California Code of Regulations
Title 10 - Investment
Chapter 5 - Insurance Commissioner
Subchapter 6.5 - Financial Examinations of Derivative Transactions
Article 1 - Conflicts of Interest
Section 2690.90 - Purpose

Insurance Code section 1211 authorizes a domestic incorporated insurer to engage in derivative transactions, as defined, subject to specified conditions.

Subsection (l) of section 1211 provides that the Commissioner may adopt rules and issue guidelines establishing standards and requirements relative to practices authorized by section 1211. In connection with any of the actions contemplated by section 1211 to be taken by the Commissioner, including review of an insurer's written guidelines with respect to derivative transactions and review of the documentation maintained by an insurer with respect to derivative transactions, the Commissioner may deem the actions to be an examination of an insurer subject to the provisions of sections 730 to 738, inclusive.

Further, subsection (l) requires the Commissioner to issue regulations establishing requirements regarding the disclosure of affiliations and conflicts of interest between an insurer and the person(s) assigned to perform such examinations.

1. New subchapter 6.5, article 1 (sections 2690.90-2690.94) and section filed 12-19-2006; operative 1-18-2007 (Register 2006, No. 51).

Note: Authority cited: Section 1211(l), Insurance Code. Reference: Sections 730, 733, 734, 734.1, 735, 735.5, 736, 737 and 1211, Insurance Code.