Tex. Ins. Code § 424.053 · Subchapter B. INVESTMENT OF FUNDS IN EXCESS OF MINIMUM CAPITAL AND SURPLUS
LIMITATION AS TO SINGLE ISSUER OR BORROWER.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(a) Notwithstanding Sections 424.051, 424.056-424.071, and 424.074, the aggregate amount of an insurer's investments in all or any type of securities, loans, obligations, or evidences of indebtedness of a single issuer or borrower, other than investments described by Subsection (c), may not exceed five percent of the insurer's total assets.
(b) For purposes of this section, a single issuer or borrower includes:
(1) the issuer's or borrower's majority-owned subsidiaries;
(2) the issuer's or borrower's parent; or
(3) the majority-owned subsidiaries of the issuer's or borrower's parent.
(c) This section does not apply to:
(1) an authorized investment that:
(A) is a direct obligation of or guaranteed by the full faith and credit of the United States, this state, or a political subdivision of this state; or
(B) is insured by an agency of the United States or this state; or
(2) an investment described by Section 424.061 or 424.063.
Notes and commentary — not statutory text
History
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.
Source of truth
- Edition
- Current through the 89th 2nd Called Legislative Session, 2025
- Official file
- https://statutes.capitol.texas.gov/Docs/IN/htm/IN.424.htm
- Text hash
- sha256 c0c09e0be66b826427a737e79c7d66aab3828069c83ff9fdefd4c88d58d78303
- Composed by
- compose_tx.py 2026-10-05: the Legislative Council's chapter files read in document order; verify_tx.py's independent reading (lxml DOM walk) agrees character for character
This section cites
Provisions in this library that the text above cites, as it prints each citation. A range cited as “ss. 61.13-61.16” links its first and last provisions.
Insurance Code
- Tex. Ins. Code § 424.051GENERAL INVESTMENT AUTHORITY SPECIFIED BY LAW.Printed as Sections 424.051, 424.056-424.071, and 424.074
- Tex. Ins. Code § 424.061AUTHORIZED INVESTMENTS: DEPOSITS IN CERTAIN FINANCIAL INSTITUTIONS.Printed as Section 424.061 or 424.063
- Tex. Ins. Code § 424.063AUTHORIZED INVESTMENTS: MUTUAL FUNDS.Printed as Section 424.061 or 424.063
- Tex. Ins. Code § 424.074OTHER SPECIFICALLY AUTHORIZED INVESTMENTS.Printed as Sections 424.051, 424.056-424.071, and 424.074
Procedural information only. Not legal advice and not a substitute for the advice of an attorney. Confirm the current text with the official publisher before relying on it.