Tex. Ins. Code § 425.109 · Subchapter C. AUTHORIZED INVESTMENTS AND TRANSACTIONS FOR CAPITAL STOCK LIFE, HEALTH, AND ACCIDENT INSURERS
AUTHORIZED INVESTMENTS: GOVERNMENT OBLIGATIONS.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(a) An insurance company may invest in:
(1) a bond, evidence of indebtedness, or other obligation of the United States;
(2) a bond, evidence of indebtedness, or other obligation guaranteed as to principal and interest by the full faith and credit of the United States;
(3) a bond, evidence of indebtedness, or other obligation of an agency or instrumentality of the United States government; and
(4) subject to Subsections (b) and (c), a bond, evidence of indebtedness, or other obligation of a governmental unit in the United States, Canada, or any province or municipality of Canada, or of an instrumentality of one of those governmental units.
(b) An insurance company may not invest in a bond, evidence of indebtedness, or other obligation under Subsection (a)(4) if the governmental unit or instrumentality is in default in the payment of principal of or interest on any of the governmental unit's or instrumentality's obligations.
(c) An insurance company's investments in the obligations of a single governmental unit or instrumentality under Subsection (a)(4) may not exceed 20 percent of the company's capital and surplus.
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.425.htm
- Text hash
- sha256 f4556e90af624c3bff505611f85b4d43c1a9b854b100a20a91e7e5fa9ef8d82e
- 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
Cited by 6 provisions
Provisions in this library whose text cites Tex. Ins. Code § 425.109. Each shows the citation as that text prints it.
Insurance Code
- Tex. Ins. Code § 425.151AUTHORIZED INVESTMENTS: FOREIGN COUNTRIES AND UNITED STATES TERRITORIES.Printed as Sections 425.109-425.121, 425.124-425.132, and 425.152
- Tex. Ins. Code § 425.152AUTHORIZED INVESTMENTS: INVESTMENTS NOT OTHERWISE SPECIFIED OR PROHIBITED; INVESTMENTS AUTHORIZED BY OTHER LAW.Printed as Sections 425.109-425.121, 425.124-425.132, and 425.151
- Tex. Ins. Code § 425.153AUTHORIZED INVESTMENTS: CERTAIN PREVIOUSLY AUTHORIZED INVESTMENTS.Printed as Sections 425.109-425.120, 425.151, and 425.152
- Tex. Ins. Code § 425.157AGGREGATE DIVERSIFICATION REQUIREMENTS.Printed as Sections 425.109-425.120, 425.122-425.153, and 425.155(a)
- Tex. Ins. Code § 425.158WAIVER BY COMMISSIONER OF QUANTITATIVE LIMITATIONS.Printed as Sections 425.109-425.132 and 425.151-425.156
- Tex. Ins. Code § 425.161ACTING AS REAL ESTATE BROKER OR SALESPERSON PROHIBITED.Printed as Sections 425.109-425.132 and 425.151-425.153
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.