(a) An insurance company may enter into a replication transaction only with the prior written approval of the commissioner, and only if:
(1) the company would otherwise be authorized to invest the company’s funds under this subchapter in the asset being replicated; and
(2) the asset being replicated is subject to all the provisions of this subchapter relating to the making of investments by the company in that type of asset as if the transaction constituted a direct investment by the company in the replicated asset.
(b) The commissioner may adopt fair and reasonable rules regarding replication transactions to implement this section.