Tex. Ins. Code § 862.002 · Subchapter A. REGULATION OF FIRE AND MARINE INSURANCE COMPANIES
PROHIBITIONS RELATING TO HOLDING REAL PROPERTY; EXCEPTIONS.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(a) A fire, marine, or inland marine insurance company may not purchase, hold, or convey real property, except as provided by Subsections (b) and (c).
(b) The company may erect and maintain buildings ample and adequate for the transaction of the company's business.
(c) Subsection (a) does not apply to:
(1) real property mortgaged to the company in good faith as security for a loan previously contracted or for money due;
(2) real property conveyed to the company in satisfaction of a debt previously contracted in the legitimate business of the company or for money due;
(3) real property purchased under a judgment, decree, or mortgage obtained or made for a debt under Subdivision (2); or
(4) a mineral or royalty interest reserved on the sale of real property acquired under Subdivision (1), (2), or (3) before January 1, 1942.
(d) A fire, marine, or inland marine insurance company may not invest more than 33-1/3 percent of the company's admitted assets in real property. A fire, marine, or inland marine insurance company may not invest any of its capital or minimum surplus in real property, other than real property described by Subsection (c).
(e) Section 861.258 applies to real property acquired under Subsection (c)(1), (2), or (3).
(f) The commissioner shall appoint at least two competent and disinterested residents of this state to appraise real property described by Subsection (b) when the property is acquired or when the company applies for amendment to its charter. The company shall pay to the commissioner the reasonable cost of the appraisal.
Notes and commentary — not statutory text
History
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
Source of truth
- Edition
- Current through the 89th 2nd Called Legislative Session, 2025
- Official file
- https://statutes.capitol.texas.gov/Docs/IN/htm/IN.862.htm
- Text hash
- sha256 77c2e5124228ae6c03c5f46cf64075038d69dbbaf901bf3fe1a772bfab264d74
- 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.
Cited by 5 provisions
Provisions in this library whose text cites Tex. Ins. Code § 862.002. Each shows the citation as that text prints it.
Insurance Code
- Tex. Ins. Code § 424.056WRITTEN INVESTMENT PLAN.Printed as Sections 822.204, 822.209, 861.258, and 862.002
- Tex. Ins. Code § 424.064AUTHORIZED INVESTMENTS: REAL PROPERTY.Printed as Section 862.002
- Tex. Ins. Code § 861.251MINIMUM CAPITAL AND SURPLUS.Printed as Section 862.002
- Tex. Ins. Code § 861.258REAL PROPERTY.Printed as Section 862.002 | Sections 862.002(c)(1)
- Tex. Ins. Code § 941.204AUTHORIZED INVESTMENTS.Printed as Section 862.002
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.