Tex. Ins. Code § 425.232 · Subchapter D. AUTHORIZED INVESTMENTS AND TRANSACTIONS FOR OTHER LIFE, HEALTH, AND ACCIDENT INSURERS
AUTHORIZED INVESTMENTS: IMPROVED INCOME-PRODUCING REAL PROPERTY.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(a) In this section, "improved income-producing real property" includes all commercial and industrial real property, a substantial portion of which has been materially enhanced in value by the construction of durable, permanent-type buildings and other improvements costing an amount at least equal to the value of the real property, excluding the buildings and improvements, that is held or acquired by purchase, lease, or otherwise for the production of income. The term does not include agricultural, horticultural, farm and ranch, or residential property, or single or multiunit family dwelling property.
(b) Notwithstanding Sections 425.229, 425.230, and 425.231, subject to this section, a domestic insurer may:
(1) invest any of the insurer's funds and accumulations in improved income-producing real property or any interest in improved income-producing real property; and
(2) hold, improve, maintain, manage, lease, sell, or convey improved income-producing real property or an interest in improved income-producing real property.
(c) The aggregate amount of an insurer's investments in all income-producing real property, including improvements, may not exceed 15 percent of the insurer's admitted assets. The amount of an insurer's investment in a single piece of improved income-producing real property, including improvements, may not exceed five percent of the insurer's admitted assets. For purposes of this subsection, an insurer's admitted assets are determined from the insurer's annual statement as of the preceding December 31 and filed with the department as required by law. Section 425.229(f) applies to the value of any investment made under this section.
(d) The investment authority granted by this section is in addition to that granted by Sections 425.229, 425.230, and 425.231, except that an insurer may not make an investment in improved income-producing real property that, when added to the insurer's investments under Section 425.229, would exceed the limitations imposed by Section 425.229(e).
(e) This section does not permit an insurer to purchase undeveloped real property for the purpose of development or subdivision.
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 0d2034730f1c66e7fa7f325628682fd2a5d2155b0f8f79eefb783fe8ae6745ad
- 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 § 425.229AUTHORIZED INVESTMENTS: REAL ESTATE FOR INSURER'S OFFICES.Printed as Section 425.229 | Section 425.229(e) | Section 425.229(f) | Sections 425.229, 425.230, and 425.231
- Tex. Ins. Code § 425.230AUTHORIZED INVESTMENTS: OIL, GAS, AND MINERALS.Printed as Sections 425.229, 425.230, and 425.231
- Tex. Ins. Code § 425.231AUTHORIZED INVESTMENTS: REAL PROPERTY ACQUIRED UNDER CERTAIN CIRCUMSTANCES.Printed as Sections 425.229, 425.230, and 425.231
Cited by 1 provision
Provisions in this library whose text cites Tex. Ins. Code § 425.232. Each shows the citation as that text prints it.
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