§ 1410. Derivative transactions and derivative instruments. (a) For\npurposes of this section, except subsection (k) of this section, an\ninsurer shall mean a domestic life insurer, a domestic property/casualty\ninsurer, a domestic reciprocal insurer, a domestic mortgage guaranty\ninsurer, a domestic co-operative property/casualty insurance corporation\nor a domestic financial guaranty insurer.\n (b) (1) An insurer may only engage in derivative transactions pursuant\nto and in compliance with the requirements of this section. Any insurer\nsubject to the provisions of subsection (c) of section one thousand four\nhundred three of this article shall also comply with the requirements\nset forth in such subsection relative to derivative transactions\nauthorized by this section.\n (2) An insurer may use derivative instruments under this section to\nengage in hedging transactions, replication transactions, and for\ncertain limited income generation transactions authorized pursuant to\nthis section.\n (3) Prior to entering into any derivative transaction authorized\npursuant to this section:\n (A) the board of directors of the insurer or a committee thereof\ncharged with the responsibility for supervising investments shall: (i)\nauthorize such transactions, (ii) assure that all individuals\nconducting, monitoring, controlling and auditing derivative transactions\nare suitably qualified and have appropriate levels of knowledge and\nexperience, and (iii) approve a derivative use plan for such\ntransactions or an amendment to a previously adopted derivative use\nplan. If such determinations are made by a committee of such a board,\nthe minutes of the committee reflecting such determinations shall be\nrecorded and a report thereon shall be submitted to the board of\ndirectors for its review at such board's next meeting;\n (B) the insurer shall submit a written derivative use plan or\namendment thereto to the superintendent for approval; and\n (C) the superintendent shall approve the insurer's written derivative\nplan for engaging in derivative transactions and investment practices\nrelated to derivative transactions. The plan shall specify guidelines as\nto the quality, maturity and diversification of derivative investments\nand other specifications, including investment strategies,\nasset/liability management practices, its liquidity needs and its\ncapital and surplus as they relate to the derivative use plan. The board\nof directors or a committee thereof charged with the responsibility for\nsupervising investments shall determine at least quarterly whether all\nderivative transactions have been made in accordance with delegations,\nstandards, limitations and investment objectives prescribed in the\ninsurer's derivatives use plan. If such determinations are made by a\ncommittee of such a board, the minutes of the committee reflecting such\ndeterminations shall be recorded and a report thereon shall be submitted\nto the board of directors for its review at such board's next meeting.\n (D) (i) Within ninety days of receipt of a derivative use plan\napplication, the superintendent shall, in writing, approve, submit a\ndetailed list to the insurer requesting all additional information\nnecessary to make a determination on the plan, or deny such plan;\notherwise, such plan shall be deemed approved. Any denial issued by the\nsuperintendent shall state the reasons for such disapproval. If an\ninsurer does not provide the additional information requested by the\nsuperintendent, within forty-five days of receipt of such request, then\nsuch plan shall be deemed denied. Such forty-five day limit for\nproviding such additional information may be extended at the option of\nthe superintendent.\n (ii) In the event that an insurer properly submits the additional\ninformation requested by the superintendent, then such plan shall be\ndeemed approved sixty days after receipt of such information by the\nsuperintendent, unless the insurer is notifie
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