§431:6-321  Hedging transactions.  (a) 
A domestic insurer may effect or maintain bona fide hedging transactions
pertaining to securities otherwise eligible for investment under this part
including, 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 person
to purchase the securities.



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



(c)  For purposes of this section, a bona fide
hedging 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 to
interest obligations on insurance policies or contracts supported by securities
held by the insurer, or



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