TX Ins Code § 424.074 (2021)
2021 Texas Statutes|Insurance Code|Title 4 - Regulation of Solvency|Subtitle B - Reserves and Investments|Chapter 424 - Investments for Certain Insurers|Subchapter B. Investment of Funds in Excess|Section 424.074. Other Specifically Authorized Investments

Sec. 424.074.  OTHER SPECIFICALLY AUTHORIZED INVESTMENTS.  An insurer may invest the insurer's funds in excess of minimum capital and surplus in:(1)  a savings account as authorized by Chapter 65, Finance Code;(2)  a bond or other indebtedness as authorized by Sections 435.045 and 435.046, Government Code;(3)  a bond issued under Subchapter B, Chapter 1505, Government Code;(4)  a bond as authorized by Subchapter B, Chapter 284, Transportation Code;(5)  a municipal bond issued under Sections 51.038 and 51.039, Water Code;(6)  an insured account or evidence of indebtedness as authorized by Section 1, Chapter 160, General Laws, Acts of the 43rd Legislature, Regular Session, 1933 (Article 842a, Vernon's Texas Civil Statutes);(7)  an insured or guaranteed obligation as authorized by Chapter 230, Acts of the 49th Legislature, Regular Session, 1945 (Article 842a-1, Vernon's Texas Civil Statutes);(8)  a bond issued under Section 1, Chapter 1, page 427, General Laws, Acts of the 46th Legislature, Regular Session, 1939 (Article 1269k-1, Vernon's Texas Civil Statutes);(9)  a bond as authorized by Section 24, Chapter 110, Acts of the 51st Legislature, Regular Session, 1949 (Article 8280-133, Vernon's Texas Civil Statutes);(10)  a bond as authorized by Section 19, Chapter 340, Acts of the 51st Legislature, Regular Session, 1949 (Article 8280-137, Vernon's Texas Civil Statutes);(11)  a bond as authorized by Section 10, Chapter 398, Acts of the 51st Legislature, Regular Session, 1949 (Article 8280-138, Vernon's Texas Civil Statutes);(12)  a bond as authorized by Section 18, Chapter 465, Acts of the 51st Legislature, Regular Session, 1949 (Article 8280-139, Vernon's Texas Civil Statutes); or(13)  another investment specifically authorized by law.|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|Sec. 424.075.  AUTHORIZED INVESTMENTS: BOND EXCHANGE-TRADED FUNDS.  (a)  An insurer may invest the insurer's funds in excess of minimum capital and surplus in shares of a bond exchange-traded fund registered under the Investment Company Act of 1940 (15 U.S.C. Section 80a-1 et seq.), as amended, if:(1)  the exchange-traded fund is solvent and reported at least $100 million of net assets in the exchange-traded fund's latest annual or more recent certified audited financial statement;(2)  the securities valuation office has designated the exchange-traded fund as meeting the criteria to be placed on the list promulgated by the securities valuation office of exchange-traded funds eligible for reporting as a long-term bond in the Purposes and Procedures Manual of the securities valuation office or a successor publication; and(3)  the amount of the insurer's investment in the exchange-traded fund does not exceed 15 percent of the insurer's capital and surplus.(b)  This section does not authorize an insurer to invest in a bond exchange-traded fund that has:(1)  embedded structural features designed to deliver performance that does not track the full unlevered and positive return of the underlying index or exposure, including a leveraged or inverse exchange-traded fund; or(2)  an expense ratio in excess of 100 basis points.(c)  An insurer may deposit with the department shares of a bond exchange-traded fund described by Subsection (a) as a statutory deposit if state law requires a statutory deposit from the insurer.|Added by Acts 2019, 86th Leg., R.S., Ch. 1132 (H.B. 2694), Sec. 1, eff. September 1, 2019.|