# Mont. Code Ann. § 33-12-109: 33-12-109 Credit risk attributable to derivative statement

> Montana · Statutes · In force

URL: https://www.frixlaw.com/law-library/statutes/STATE_MT_T33_C12_P1_S33-12-109

## Section

- **Citation:** Mont. Code Ann. § 33-12-109
- **Heading:** 33-12-109 Credit risk attributable to derivative statement
- **Jurisdiction:** Montana
- **Kind:** Statutes
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** MT Code / Title 33 / Chapter 12 / Part 1 / Section 33-12-109

## Text

33-12-109 . Credit risk attributable to derivative statement. (1) The amount of credit risk equals:

(a) the market value of the over-the-counter derivative instrument if the liquidation of the derivative instrument would result in a final cash payment to the insurer; or

(b) zero if the liquidation of the derivative instrument would not result in a final cash payment to the insurer.

(2) If over-the-counter derivative instruments are entered into under a written master agreement that provides for netting of payments owed by the respective parties and the domiciliary jurisdiction of the counterparty is either within the United States or if not within the United States, within a foreign jurisdiction listed in the Purposes and Procedures of the Securities Valuation Office as eligible for netting, the net amount of credit risk must be the greater of zero or the net sum of:

(a) the market value of the over-the-counter derivative instruments entered into under the agreement, the liquidation of which would result in a final cash payment to the insurer; and

(b) the market value of the over-the-counter derivative instruments entered into under the agreement, the liquidation of which would result in a final cash payment by the insurer to the business entity.

(3) For open transactions, market value must be determined at the end of the most recent quarter of the insurer's fiscal year and must be reduced by the market value of acceptable collateral held by the insurer or placed in escrow by one or both parties.

## Nearby sections

- [Mont. Code Ann. § 33-12-101 33-12-101 Purpose and scope](https://www.frixlaw.com/law-library/statutes/STATE_MT_T33_C12_P1_S33-12-101.md)
- [Mont. Code Ann. § 33-12-102 33-12-102 Definitions](https://www.frixlaw.com/law-library/statutes/STATE_MT_T33_C12_P1_S33-12-102.md)
- [Mont. Code Ann. § 33-12-103 33-12-103 General investment qualifications](https://www.frixlaw.com/law-library/statutes/STATE_MT_T33_C12_P1_S33-12-103.md)
- [Mont. Code Ann. § 33-12-104 33-12-104 Authorization of investments by board of directors](https://www.frixlaw.com/law-library/statutes/STATE_MT_T33_C12_P1_S33-12-104.md)
- [Mont. Code Ann. § 33-12-105 33-12-105 Prohibited investments](https://www.frixlaw.com/law-library/statutes/STATE_MT_T33_C12_P1_S33-12-105.md)
- [Mont. Code Ann. § 33-12-106 33-12-106 Loans to officers and directors](https://www.frixlaw.com/law-library/statutes/STATE_MT_T33_C12_P1_S33-12-106.md)
- [Mont. Code Ann. § 33-12-107 33-12-107 Valuation of investments](https://www.frixlaw.com/law-library/statutes/STATE_MT_T33_C12_P1_S33-12-107.md)
- [Mont. Code Ann. § 33-12-108 33-12-108 Presumption of control](https://www.frixlaw.com/law-library/statutes/STATE_MT_T33_C12_P1_S33-12-108.md)
- [Mont. Code Ann. § 33-12-109 33-12-109 Credit risk attributable to derivative statement](https://www.frixlaw.com/law-library/statutes/STATE_MT_T33_C12_P1_S33-12-109.md)
- [Mont. Code Ann. § 33-12-110 33-12-110 Special rated credit instrument](https://www.frixlaw.com/law-library/statutes/STATE_MT_T33_C12_P1_S33-12-110.md)
- [Mont. Code Ann. § 33-12-111 33-12-111 Rules](https://www.frixlaw.com/law-library/statutes/STATE_MT_T33_C12_P1_S33-12-111.md)
- [Mont. Code Ann. § 33-12-112 33-12-112 Foreign and alien insurers](https://www.frixlaw.com/law-library/statutes/STATE_MT_T33_C12_P1_S33-12-112.md)
- [Mont. Code Ann. § 33-12-113 33-12-113 Indemnification agreement](https://www.frixlaw.com/law-library/statutes/STATE_MT_T33_C12_P1_S33-12-113.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_MT_T33_C12_P1_S33-12-109. Check the current official text before relying on it. Not legal advice.