Tex. Ins. Code § 841.412 · Subchapter I. LIMITED PURPOSE SUBSIDIARY LIFE INSURANCE COMPANIES
MINIMUM AUTHORIZED INVESTMENT REQUIREMENT AFTER CREDIT FOR REINSURANCE; LETTERS OF CREDIT; GUARANTIES.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(a) A limited purpose subsidiary life insurance company shall hold investments authorized under Subchapters C and D, Chapter 425, exclusive of investments in affiliates, in an amount that at least equals the sum of:
(1) the minimum capital and surplus requirements of Section 841.410;
(2) the risk-based capital requirements adopted by the commissioner; and
(3) reserves calculated using generally accepted accounting principles.
(b) Subject to compliance with Subsection (a) and notwithstanding Chapter 425, a limited purpose subsidiary life insurance company may reduce the amount of the company's excess reserves on account of:
(1) reinsurance that complies with Chapter 493;
(2) a letter of credit that complies with Section 493.104(b)(2)(C); or
(3) guaranties from a holding company or an affiliated company as provided by Section 841.417.
(c) Notwithstanding Subsection (b), a limited purpose subsidiary life insurance company may hold guaranties from a holding company or an affiliated company as provided by Section 841.417 as an admitted asset with an offsetting increase in special surplus funds to support excess reserves only.
Notes and commentary — not statutory text
History
Added by Acts 2011, 82nd Leg., R.S., Ch. 1173 (H.B. 3161), Sec. 1, eff. June 17, 2011.
Amended by:
Acts 2017, 85th Leg., R.S., Ch. 594 (S.B. 1070), Sec. 3.07, eff. September 1, 2017.
Source of truth
- Edition
- Current through the 89th 2nd Called Legislative Session, 2025
- Official file
- https://statutes.capitol.texas.gov/Docs/IN/htm/IN.841.htm
- Text hash
- sha256 d4dfb795030dec494f11902b4f8b002f64beadda679742c5733c72abc5c79ab7
- 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 ch. 425RESERVES AND INVESTMENTS FOR LIFE INSURANCE COMPANIES AND RELATED ENTITIESPrinted as Chapter 425
- Tex. Ins. Code ch. 493AUTHORIZED REINSURANCE; CREDIT AND ACCOUNTINGPrinted as Chapter 493
- Tex. Ins. Code § 493.104CREDIT FOR FUNDS SECURING REINSURANCE OBLIGATIONS.Printed as Section 493.104(b)(2)(C)
- Tex. Ins. Code § 841.410CAPITAL AND SURPLUS.Printed as Section 841.410
- Tex. Ins. Code § 841.417GUARANTY REQUIREMENTS.Printed as Section 841.417
Cited by 2 provisions
Provisions in this library whose text cites Tex. Ins. Code § 841.412. 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.