§431:6-321  Hedging transactions.  (a) A domestic insurer may effect or maintain bona fide hedging transactionspertaining to securities otherwise eligible for investment under this partincluding, but not limited to:

(1)  Financial futures contracts, warrants, options,calls, and other rights to purchase, and

(2)  Puts and other rights to require another personto purchase the securities.

(b)  The contracts, options, calls, puts, andrights shall be traded on a commodity exchange regulated under the CommodityExchange Act, as amended, on a securities exchange, or on an over-the-countermarket regulated under the Securities Exchange Act of 1934, as amended.

(c)  For purposes of this section, a bona fidehedging transaction means a purchase or sale of a contract, warrant, option,call, put, or right entered into for the purpose of:

(1)  Minimizing interest rate risks in respect tointerest obligations on insurance policies or contracts supported by securitiesheld by the insurer, or

(2)  Offsetting changes in the market values or yieldrates of securities held by the insurer. [L 1987, c 349, §3]