reglab/housing_qa huggingface dataset:
TX Ins Code § 425.220 (2021)
2021 Texas Statutes|Insurance Code|Title 4 - Regulation of Solvency|Subtitle B - Reserves and Investments|Chapter 425 - Reserves and Investments for Life Insurance Companies and Related Entities|Subchapter D. Authorized Investments and Transactions for Other Life, Health, and Accident Insurers|Section 425.220. Authorized Investments for Capital, Surplus, and Contingency Funds: Capital Stock, Bonds, and Other Corporate Obligations

Sec. 425.220.  AUTHORIZED INVESTMENTS FOR CAPITAL, SURPLUS, AND CONTINGENCY FUNDS:  CAPITAL STOCK, BONDS, AND OTHER CORPORATE OBLIGATIONS.  (a)  Subject to this section and Section 425.226, an insurer may invest the insurer's capital, surplus, and contingency funds in the capital stock, bonds, bills of exchange, or other commercial notes or bills and securities of:(1)  a solvent corporation that has not defaulted in the payment of any debt during the five years preceding the investment; or(2)  a solvent corporation that has not been in existence for the five years preceding the investment, if:(A)  the corporation has succeeded to the business and assets and has assumed the liabilities of another corporation; and(B)  neither the successor corporation nor the corporation succeeded has defaulted in the payment of any debt during the five years preceding the investment.(b)  An insurer may not invest in the stock of:(1)  a manufacturing corporation with a net worth of less than $25,000; or(2)  an oil corporation with a net worth of less than $500,000.(c)  Except as provided by Subsection (d), an insurer's investment in the insurer's own capital stock or in the stock of a single corporation may not be in an amount exceeding 10 percent of the amount of the insurer's capital, surplus, and contingency funds.(d)  An insurer may own, and the insurer may invest not more than 25 percent of the insurer's capital, surplus, and contingency funds in, the capital stock of a single fire and casualty insurance company if that investment gives the insurer a majority of the outstanding stock of the fire and casualty insurance company.(e)  In addition to the investments authorized by this section and subject to Section 425.226, an insurer may invest in the capital stock, bonds, and other obligations of one or more solvent corporations that portion of the insurer's surplus funds that exceeds the greater of:(1)  10 percent of the insurer's admitted assets, as determined from the insurer's latest annual statement on file with the department; or(2)  the minimum capital and surplus requirements for incorporating a life insurance company under Chapter 841.|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|
TX Ins Code § 425.221 (2021)
2021 Texas Statutes|Insurance Code|Title 4 - Regulation of Solvency|Subtitle B - Reserves and Investments|Chapter 425 - Reserves and Investments for Life Insurance Companies and Related Entities|Subchapter D. Authorized Investments and Transactions for Other Life, Health, and Accident Insurers|Section 425.221. Authorized Investments for Capital, Surplus, and Contingency Funds: Bonds or Notes of Educational or Religious Corporations

Sec. 425.221.  AUTHORIZED INVESTMENTS FOR CAPITAL, SURPLUS, AND CONTINGENCY FUNDS:  BONDS OR NOTES OF EDUCATIONAL OR RELIGIOUS CORPORATIONS.  Subject to Section 425.226, an insurer may invest the insurer's capital, surplus, and contingency funds in a bond or note of an educational or religious corporation that has provided for the payment of a sufficient amount of the first weekly or monthly revenues of the corporation to an interest and sinking fund account in a bank or trust company as an independent paying agent. |Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|
TX Ins Code § 425.222 (2021)
2021 Texas Statutes|Insurance Code|Title 4 - Regulation of Solvency|Subtitle B - Reserves and Investments|Chapter 425 - Reserves and Investments for Life Insurance Companies and Related Entities|Subchapter D. Authorized Investments and Transactions for Other Life, Health, and Accident Insurers|Section 425.222. Authorized Investments for Capital, Surplus, and Contingency Funds: Life Income Interests in Qualified Trusts

Sec. 425.222.  AUTHORIZED INVESTMENTS FOR CAPITAL, SURPLUS, AND CONTINGENCY FUNDS:  LIFE INCOME INTERESTS IN QUALIFIED TRUSTS.  (a)  Subject to this section, an insurer may invest the insurer's capital, surplus, and contingency funds in a life income interest in a qualified irrevocable express testamentary trust.(b)  For purposes of this section, a trust is a qualified trust if:(1)  each fee simple recipient of any part of the corpus of the trust:(A)  is a public charity, church, educational institution, or scientific institution;(B)  is located in this state; and(C)  is recognized by the United States Internal Revenue Service as exempt from payment of income taxes;(2)  the corpus of the trust is wholly or partly composed of interests in real estate, stocks, bonds, debentures, and other securities of an aggregate total value of at least $5 million; and(3)  the corpus of the trust produces annual income of at least $100,000.(c)  An insurer's life income interest in a qualified trust may not exceed 10 percent of the insurer's admitted assets.(d)  Before an insurer may acquire a life income interest in a qualified trust, the insurer must present evidence satisfactory to the commissioner that shows:(1)  the interest is subject to transfer and is recognized as transferable;(2)  the interest is capable of reasonable valuation;(3)  a market for the sale of the interest exists; and(4)  the interest is supported by life insurance in:(A)  an amount not less than the admitted value of the interest; and(B)  a form approved by the commissioner.(e)  In valuing a life income interest in a qualified trust on the insurer's books, the insurer may value the interest only on the basis of the lesser of:(1)  the recognized market established in accordance with Subsection (d)(3); or(2)  the ratio that the fractional life income interest in the income of the trust bears to the total market value of the properties held by the trust that are of a type of property an insurer may lawfully acquire under the investment statutes of this state.|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|
TX Ins Code § 425.223 (2021)
2021 Texas Statutes|Insurance Code|Title 4 - Regulation of Solvency|Subtitle B - Reserves and Investments|Chapter 425 - Reserves and Investments for Life Insurance Companies and Related Entities|Subchapter D. Authorized Investments and Transactions for Other Life, Health, and Accident Insurers|Section 425.223. Authorized Investments for Capital, Surplus, and Contingency Funds: Capital Stock of Reinsurer

Sec. 425.223.  AUTHORIZED INVESTMENTS FOR CAPITAL, SURPLUS, AND CONTINGENCY FUNDS:  CAPITAL STOCK OF REINSURER.  (a)  Subject to Subsection (b), an insurer may invest the insurer's capital, surplus, and contingency funds in not more than 20 percent of the capital stock of any other insurance company organized under Chapter 841 whose principal business is the reinsurance, either wholly or partly, of risks ceded to that insurer by other life insurance companies.(b)  The aggregate amount of an insurer's investments under this section may not exceed 10 percent of the insurer's capital, surplus, and contingency funds.(c)  The investment authorized by this section may be made by purchase of stock issued and outstanding or by subscription to and payment for the increase in the capital stock of the reinsurer. |Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|
TX Ins Code § 425.224 (2021)
2021 Texas Statutes|Insurance Code|Title 4 - Regulation of Solvency|Subtitle B - Reserves and Investments|Chapter 425 - Reserves and Investments for Life Insurance Companies and Related Entities|Subchapter D. Authorized Investments and Transactions for Other Life, Health, and Accident Insurers|Section 425.224. Authorized Investments for Capital, Surplus, and Contingency Funds: Loans Secured by Corporate Stock

Sec. 425.224.  AUTHORIZED INVESTMENTS FOR CAPITAL, SURPLUS, AND CONTINGENCY FUNDS:  LOANS SECURED BY CORPORATE STOCK.  (a)  Subject to this section, an insurer may loan the insurer's capital, surplus, and contingency funds and take as collateral the capital stock, bonds, bills of exchange, or other commercial notes or bills or the securities of:(1)  a solvent corporation that has not defaulted in the payment of any debt during the five years preceding the investment; or(2)  a solvent corporation that has not been in existence for the five years preceding the investment, if:(A)  the corporation has succeeded to the business and assets and has assumed the liabilities of another corporation; and(B)  neither the successor corporation nor the corporation succeeded has defaulted in the payment of any debt during the five years preceding the investment.(b)  Subject to this section, an insurer may loan the insurer's capital, surplus, and contingency funds and take as collateral the bonds or notes of an educational or religious corporation that has provided for the payment of a sufficient amount of the first weekly or monthly revenues of the corporation to an interest and sinking fund account in a bank or trust company as an independent paying agent.(c)  The market value of the stock, bills of exchange, other commercial notes or bills, or securities must be at all times during the continuance of the loan at least 50 percent more than the amount loaned on the securities or obligations.(d)  An insurer may not take as collateral for any loan:(1)  the insurer's capital stock;(2)  the stock of a single corporation in an amount that exceeds 10 percent of the amount of the insurer's own capital, surplus, and contingency funds;(3)  the stock of a manufacturing corporation with a net worth of less than $25,000;(4)  the stock of an oil corporation with a net worth of less than $500,000; or(5)  any stock, the holder or owner of which is or may become liable for any assessment other than taxes. |Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|
TX Ins Code § 425.225 (2021)
2021 Texas Statutes|Insurance Code|Title 4 - Regulation of Solvency|Subtitle B - Reserves and Investments|Chapter 425 - Reserves and Investments for Life Insurance Companies and Related Entities|Subchapter D. Authorized Investments and Transactions for Other Life, Health, and Accident Insurers|Section 425.225. Investment in Foreign Securities

Sec. 425.225.  INVESTMENT IN FOREIGN SECURITIES.  (a)  An insurer authorized to engage in business in a foreign country may invest in securities of that country that are the same kind of securities as those in the United States in which an insurer is authorized by this subchapter to invest.(b)  The aggregate amount of an insurer's investments under this section may not exceed the amount of the insurer's reserves on the business in force in the foreign country.|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|
TX Ins Code § 425.226 (2021)
2021 Texas Statutes|Insurance Code|Title 4 - Regulation of Solvency|Subtitle B - Reserves and Investments|Chapter 425 - Reserves and Investments for Life Insurance Companies and Related Entities|Subchapter D. Authorized Investments and Transactions for Other Life, Health, and Accident Insurers|Section 425.226. Investment in Stock Subject to Assessment Prohibited

Sec. 425.226.  INVESTMENT IN STOCK SUBJECT TO ASSESSMENT PROHIBITED.  An insurer may not invest any of the insurer's funds in a stock, the holder or owner of which is or may become liable for any assessment other than taxes.|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|
TX Ins Code § 425.227 (2021)
2021 Texas Statutes|Insurance Code|Title 4 - Regulation of Solvency|Subtitle B - Reserves and Investments|Chapter 425 - Reserves and Investments for Life Insurance Companies and Related Entities|Subchapter D. Authorized Investments and Transactions for Other Life, Health, and Accident Insurers|Section 425.227. Certain Investment Powers Not a Restriction

Sec. 425.227.  CERTAIN INVESTMENT POWERS NOT A RESTRICTION.  The investment powers granted by Sections 425.207 and 425.208 may not be construed as restricting the powers granted by Sections 425.220 and 425.221.|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|
TX Ins Code § 425.228 (2021)
2021 Texas Statutes|Insurance Code|Title 4 - Regulation of Solvency|Subtitle B - Reserves and Investments|Chapter 425 - Reserves and Investments for Life Insurance Companies and Related Entities|Subchapter D. Authorized Investments and Transactions for Other Life, Health, and Accident Insurers|Section 425.228. Investments of Ceding Insurer

Sec. 425.228.  INVESTMENTS OF CEDING INSURER.  (a)  Subject to this section, if a domestic insurer assumes the business and takes over the assets of another domestic or a foreign insurer, all investments of the ceding insurer that were authorized, when made, by the laws of the state in which the ceding insurer was organized as proper securities for investment of the funds of an insurer and that are taken over by the assuming insurer are  considered to be valid securities of the assuming insurer under the laws of this state.(b)  The commissioner must approve investments described by Subsection (a) and the terms on which those investments are taken over.  The commissioner may require the assuming insurer to dispose of any of the investments on notice the commissioner considers reasonable.|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|
TX Ins Code § 425.231 (2021)
2021 Texas Statutes|Insurance Code|Title 4 - Regulation of Solvency|Subtitle B - Reserves and Investments|Chapter 425 - Reserves and Investments for Life Insurance Companies and Related Entities|Subchapter D. Authorized Investments and Transactions for Other Life, Health, and Accident Insurers|Section 425.231. Authorized Investments: Real Property Acquired Under Certain Circumstances

Sec. 425.231.  AUTHORIZED INVESTMENTS: REAL PROPERTY ACQUIRED UNDER CERTAIN CIRCUMSTANCES.  (a)  Subject to this section, an insurer may secure, hold, and convey the following real property:(1)  real property acquired in good faith as security for a loan previously contracted or for money due;(2)  real property conveyed to the insurer to satisfy a debt previously contracted in the course of the insurer's dealings; and(3)  real property purchased at a sale under a judgment, court decree, or mortgage or other lien held by the insurer.(b)  An insurer shall sell and dispose of all property described by Subsection (a) that is not necessary for the insurer's accommodation in the convenient transaction of the insurer's business, other than an interest in minerals or royalties reserved on the sale of land acquired under Subsection (a)  or an interest in producing royalties or producing overriding royalties otherwise acquired, not later than the fifth anniversary of:(1)  the date the insurer acquires title to the property; or(2)  the date the property ceases to be necessary for the accommodation of the insurer's business.(c)  An insurer may hold property acquired under Subsection (a) for a period longer than that specified by Subsection (b) if the insurer obtains a certificate from the commissioner stating that the insurer's interests will suffer materially by the forced sale of the property.  The commissioner shall state in the certificate the amount of time by which the period for sale is extended under this subsection. |Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|
TX Ins Code § 425.232 (2021)
2021 Texas Statutes|Insurance Code|Title 4 - Regulation of Solvency|Subtitle B - Reserves and Investments|Chapter 425 - Reserves and Investments for Life Insurance Companies and Related Entities|Subchapter D. Authorized Investments and Transactions for Other Life, Health, and Accident Insurers|Section 425.232. Authorized Investments: Improved Income-Producing Real Property

Sec. 425.232.  AUTHORIZED INVESTMENTS: IMPROVED INCOME-PRODUCING REAL PROPERTY.  (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.|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|
TX Ins Code § 427.001 (2021)
2021 Texas Statutes|Insurance Code|Title 4 - Regulation of Solvency|Subtitle B - Reserves and Investments|Chapter 427 - Subordinated Indebtedness|Subchapter A. General Provisions|Section 427.001. Applicability of Chapter

Sec. 427.001.  APPLICABILITY OF CHAPTER.  This chapter applies to an insurer or health maintenance organization as defined by Section 401.001.|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|
TX Ins Code § 427.002 (2021)
2021 Texas Statutes|Insurance Code|Title 4 - Regulation of Solvency|Subtitle B - Reserves and Investments|Chapter 427 - Subordinated Indebtedness|Subchapter A. General Provisions|Section 427.002. Rules

Sec. 427.002.  RULES.  The commissioner shall adopt rules necessary to implement this chapter.|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|
TX Ins Code § 427.051 (2021)
2021 Texas Statutes|Insurance Code|Title 4 - Regulation of Solvency|Subtitle B - Reserves and Investments|Chapter 427 - Subordinated Indebtedness|Subchapter B. Loan, Advance, and Other Indebtedness|Section 427.051. Loan or Advance Permitted

Sec. 427.051.  LOAN OR ADVANCE PERMITTED.  An insurer or health maintenance organization may obtain a loan or an advance, repayable with interest, of:(1)  cash;(2)  cash equivalents; or(3)  other assets that have a readily determinable value and are satisfactory to the commissioner.|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|
TX Ins Code § 427.052 (2021)
2021 Texas Statutes|Insurance Code|Title 4 - Regulation of Solvency|Subtitle B - Reserves and Investments|Chapter 427 - Subordinated Indebtedness|Subchapter B. Loan, Advance, and Other Indebtedness|Section 427.052. Subordinated Liability Permitted

Sec. 427.052.  SUBORDINATED LIABILITY PERMITTED.  (a)  An insurer or health maintenance organization may assume a subordinated liability for repayment of a loan or advance described by Section 427.051 and payment of interest on the loan or advance if the insurer or health maintenance organization and the creditor execute a written agreement stating that the creditor may be paid only out of that portion of the insurer's or health maintenance organization's surplus that exceeds the greater of:(1)  a minimum surplus amount set in the agreement; or(2)  a minimum surplus amount of $500,000.(b)  The department or commissioner may not require the agreement to provide a minimum surplus amount that is different from the amount described by this section.|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|
TX Ins Code § 427.053 (2021)
2021 Texas Statutes|Insurance Code|Title 4 - Regulation of Solvency|Subtitle B - Reserves and Investments|Chapter 427 - Subordinated Indebtedness|Subchapter B. Loan, Advance, and Other Indebtedness|Section 427.053. Approval of Agreement Required

Sec. 427.053.  APPROVAL OF AGREEMENT REQUIRED.  (a)  An insurer or health maintenance organization must submit the written  agreement under Section 427.052 to the commissioner for approval of the form and content of the agreement.(b)  The commissioner must approve or disapprove the agreement not later than the 30th day after the date the insurer or health maintenance organization submits the agreement.  If the commissioner fails to act as required by this subsection, the agreement is considered approved.(c)  An insurer or health maintenance organization may assume a subordinated liability only after the commissioner has approved the agreement under this chapter or Subchapter C, Chapter 823.|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|
TX Ins Code § 427.054 (2021)
2021 Texas Statutes|Insurance Code|Title 4 - Regulation of Solvency|Subtitle B - Reserves and Investments|Chapter 427 - Subordinated Indebtedness|Subchapter B. Loan, Advance, and Other Indebtedness|Section 427.054. Liability

Sec. 427.054.  LIABILITY.  (a)  A loan or advance made under this chapter, including any interest accruing on the loan or advance, is a legal liability of the insurer or health maintenance organization, and a liability with respect to the insurer's or health maintenance organization's financial statement, only to the extent provided by the terms of the loan or advance agreement.(b)  Notwithstanding Subsection (a), if the loan or advance agreement provides for a sinking fund out of which the loan or advance is to be repaid, the loan or advance is a legal liability of the insurer or health maintenance organization, and a liability with respect to the insurer's or health maintenance organization's financial statement, only to the extent of the amounts accumulated and held in the sinking fund.  By agreement of the parties, any portion of the amounts accumulated in the sinking fund may be returned to the surplus of the insurer or health maintenance organization at any time and any amount returned may not be a legal liability of the insurer or health maintenance organization or a liability with respect to the insurer's or health maintenance organization's financial statement.|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|