(a) An insurer may enter into a replication transaction only with the prior written approval of the commissioner.
(b) To be eligible for approval by the commissioner:
(1) the insurer must be otherwise authorized to invest the insurer’s funds under this chapter in the asset being replicated; and
(2) the asset being replicated must be subject to all the provisions of this subchapter relating to the making of the transaction by the insurer with respect to that kind of asset as if the transaction constituted a direct investment by the insurer in the replicated asset.

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