(a) Not later than the 10th day before the date an insurer is scheduled to enter into an initial hedging transaction, the insurer shall notify the commissioner in writing that:
(1) the insurer’s board of directors has adopted an investment plan that authorizes hedging transactions; and
(2) each hedging transaction will comply with this subchapter.
(b) If a hedging transaction does not comply with this subchapter or if continuing the transaction may create a hazardous financial condition for the insurer that affects the insurer’s policyholders or creditors or the public, the commissioner may, after notice and an opportunity for a hearing, order the insurer to take action that the commissioner determines is reasonably necessary to:
(1) remedy a hazardous financial condition; or
(2) prevent an impending hazardous financial condition from occurring.