Tex. Ins. Code § 424.056 · Subchapter B. INVESTMENT OF FUNDS IN EXCESS OF MINIMUM CAPITAL AND SURPLUS
WRITTEN INVESTMENT PLAN.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(a) Each insurer's board of directors, or, if the insurer does not have a board of directors, the corresponding authority designated by the insurer's charter, bylaws, or plan of operation, shall adopt a written investment plan consistent with the requirements of:
(1) this chapter;
(2) Sections 822.204, 822.209, 861.258, and 862.002; and
(3) other statutes governing investments by the insurer.
(b) The investment plan must:
(1) specify the diversification of the insurer's investments designed to reduce the risk of large losses, by:
(A) broad categories, such as bonds and real property loans;
(B) kinds, such as government obligations, obligations of business entities, mortgage-backed securities, and real property loans on office, retail, industrial, or residential properties;
(C) quality;
(D) maturity;
(E) type of industry; and
(F) geographical areas, as to both domestic and foreign investments;
(2) balance safety of principal with yield and growth;
(3) seek a reasonable relationship of assets and liabilities as to term and nature; and
(4) be appropriate considering the capital and surplus and the business conducted by the insurer.
(c) At least annually, the board of directors or corresponding authority shall review the adequacy of the investment plan and the implementation of the plan.
(d) An insurer shall maintain the insurer's investment plan in the insurer's principal office and provide the plan to the commissioner or the commissioner's designee on request. The commissioner or the commissioner's designee shall maintain the plan as a privileged and confidential document. The plan is not subject to public disclosure.
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 723b5307332e9813cd3c38c61b49ed9432b89f64c4df492b187a7fd16b5b1d17
- 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 § 822.204FORM OF CAPITAL AND SURPLUS.Printed as Sections 822.204, 822.209, 861.258, and 862.002
- Tex. Ins. Code § 822.209REINVESTMENT OF CAPITAL STOCK.Printed as Sections 822.204, 822.209, 861.258, and 862.002
- Tex. Ins. Code § 861.258REAL PROPERTY.Printed as Sections 822.204, 822.209, 861.258, and 862.002
- Tex. Ins. Code § 862.002PROHIBITIONS RELATING TO HOLDING REAL PROPERTY; EXCEPTIONS.Printed as Sections 822.204, 822.209, 861.258, and 862.002
Cited by 1 provision
Provisions in this library whose text cites Tex. Ins. Code § 424.056. Each shows the citation as that text prints it.
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.