reglab/housing_qa huggingface dataset:
TX Ins Code § 425.101 (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 C. Authorized Investments and Transactions for Capital Stock Life, Health, and Accident Insurers|Section 425.101. Definitions

Sec. 425.101.  DEFINITIONS.  In this subchapter:(1)  "Assets" means the statutory accounting admitted assets of an insurance company.  The term includes lawful money of the United States, whether in the form of cash or demand deposits in solvent banks, savings and loan associations, credit unions, and branches of those entities, organized under the laws of the United States or a state of the United States, if held in accordance with the laws or regulations applicable to those entities.  The term does not include the company's separate accounts that are subject to Chapter 1152.(2)  "Securities valuation office" means the Securities Valuation Office of the National Association of Insurance Commissioners.|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|
TX Ins Code § 425.102 (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 C. Authorized Investments and Transactions for Capital Stock Life, Health, and Accident Insurers|Section 425.102. Inapplicability of Certain Law

Sec. 425.102.  INAPPLICABILITY OF CERTAIN LAW.  The definition of "state" assigned by Section 311.005, Government Code, does not apply to this subchapter. |Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|
TX Ins Code § 425.103 (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 C. Authorized Investments and Transactions for Capital Stock Life, Health, and Accident Insurers|Section 425.103. Applicability of Subchapter

Sec. 425.103.  APPLICABILITY OF SUBCHAPTER.  (a)  This subchapter and rules adopted to interpret and implement this subchapter apply to all domestic insurance companies as defined in Section 841.001 and to other insurance companies specifically made subject to this subchapter, including a stipulated premium company that elects under Section 884.311 to be governed by this subchapter.(b)  Subchapter D does not apply to an insurance company to which this subchapter applies.(c)  This subchapter does not limit or restrict investments in or transactions with or within subsidiaries and affiliates made under Chapter 823. |Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|
TX Ins Code § 425.104 (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 C. Authorized Investments and Transactions for Capital Stock Life, Health, and Accident Insurers|Section 425.104. Purpose

Sec. 425.104.  PURPOSE.  The purpose of this subchapter is to protect and further the interests of insureds, insurance companies, creditors, and the public by providing standards for development and administration of plans for investment of insurance companies' assets.|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|
TX Ins Code § 425.105 (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 C. Authorized Investments and Transactions for Capital Stock Life, Health, and Accident Insurers|Section 425.105. Written Investment Plan

Sec. 425.105.  WRITTEN INVESTMENT PLAN.  (a)  Each insurance company's board of directors or, if the company does not have a board of directors, the corresponding authority designated by the company's charter, bylaws, or plan of operation, shall adopt a written investment plan consistent with this subchapter.(b)  The investment plan must:(1)  specify the diversification of the insurance company's investments, so as to reduce the risk of large losses, by:(A)  broad categories, such as bonds and real property loans;(B)  kinds, such as government obligations, obligations of business entities, mortgage-backed securities, and real property loans on office, retail, industrial, or residential properties;(C)  quality;(D)  maturity;(E)  industry; and(F)  geographical areas, as to both domestic and foreign investments;(2)  balance safety of principal with yield and growth;(3)  seek a reasonable relationship of assets and liabilities as to term and nature; and(4)  be appropriate considering the capital and surplus and the business conducted by the company.(c)  At least annually, the board of directors or corresponding authority shall review the adequacy of the investment plan and the implementation of the plan.(d)  An insurance company shall maintain the company's investment plan in the company's principal office and provide the plan to the commissioner or the commissioner's designee on request.  The commissioner or the commissioner's designee shall maintain the plan as a privileged and confidential document.  The plan is not subject to public disclosure. |Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|
TX Ins Code § 425.106 (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 C. Authorized Investments and Transactions for Capital Stock Life, Health, and Accident Insurers|Section 425.106. Investment Records; Demonstration of Compliance

Sec. 425.106.  INVESTMENT RECORDS; DEMONSTRATION OF COMPLIANCE.  An insurance company shall maintain investment records covering each transaction.  The company must be able to demonstrate at all times that the company's investments are within the limitations imposed by this subchapter. |Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|
TX Ins Code § 425.108 (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 C. Authorized Investments and Transactions for Capital Stock Life, Health, and Accident Insurers|Section 425.108. Authorized Investments and Transactions in General

Sec. 425.108.  AUTHORIZED INVESTMENTS AND TRANSACTIONS IN GENERAL.  (a)  Subject to the limitations and restrictions imposed by this subchapter, and, unless otherwise specified, based on the insurance company's capital, surplus, and admitted assets as reported in the company's most recently filed statutory financial statement, the investments and transactions described by this subchapter and Subchapter F, Chapter 823, are authorized investments and transactions for a company subject to this subchapter.(b)  An insurance company may not make an investment or enter into a transaction that is not authorized by this subchapter or Subchapter F, Chapter 823. |Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|
TX Ins Code § 425.109 (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 C. Authorized Investments and Transactions for Capital Stock Life, Health, and Accident Insurers|Section 425.109. Authorized Investments: Government Obligations

Sec. 425.109.  AUTHORIZED INVESTMENTS:  GOVERNMENT OBLIGATIONS.  (a)  An insurance company may invest in:(1)  a bond, evidence of indebtedness, or other obligation of the United States;(2)  a bond, evidence of indebtedness, or other obligation guaranteed as to principal and interest by the full faith and credit of the United States;(3)  a bond, evidence of indebtedness, or other obligation of an agency or instrumentality of the United States government; and(4)  subject to Subsections (b) and (c), a bond, evidence of indebtedness, or other obligation of a governmental unit in the United States, Canada, or any province or municipality of Canada, or of an instrumentality of one of those governmental units.(b)  An insurance company may not invest in a bond, evidence of indebtedness, or other obligation under Subsection (a)(4) if the governmental unit or instrumentality is in default in the payment of principal of or interest on any of the governmental unit's or instrumentality's obligations.(c)  An insurance company's investments in the obligations of a single governmental unit or instrumentality under Subsection (a)(4) may not exceed 20 percent of the company's capital and surplus. |Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|
TX Ins Code § 425.111 (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 C. Authorized Investments and Transactions for Capital Stock Life, Health, and Accident Insurers|Section 425.111. Authorized Investments: Bonds Issued, Assumed, or Guaranteed in International Market

Sec. 425.111.  AUTHORIZED INVESTMENTS:  BONDS ISSUED, ASSUMED, OR GUARANTEED IN INTERNATIONAL MARKET.  (a)  Subject to this section, an insurance company may invest in bonds issued, assumed, or guaranteed by:(1)  the Inter-American Development Bank;(2)  the International Bank for Reconstruction and Development (the World Bank);(3)  the Asian Development Bank;(4)  the State of Israel;(5)  the African Development Bank; and(6)  the International Finance Corporation.(b)  An insurance company's investments in the bonds of a single entity under this section may not exceed 20 percent of the company's capital and surplus.(c)  The aggregate of all investments made by an insurance company under this section may not exceed 20 percent of the company's assets. |Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|
TX Ins Code § 425.112 (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 C. Authorized Investments and Transactions for Capital Stock Life, Health, and Accident Insurers|Section 425.112. Authorized Investments: Policy Loans

Sec. 425.112.  AUTHORIZED INVESTMENTS:  POLICY LOANS.  An insurance company may invest in loans on the security of the company's own policies in an amount that does not exceed the amount of the reserve values of those policies. |Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|
TX Ins Code § 425.113 (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 C. Authorized Investments and Transactions for Capital Stock Life, Health, and Accident Insurers|Section 425.113. Authorized Investments: Deposits in Certain Financial Institutions

Sec. 425.113.  AUTHORIZED INVESTMENTS:  DEPOSITS IN CERTAIN FINANCIAL INSTITUTIONS.  (a)  Subject to this section, an insurance company may invest in any type of savings deposit, time deposit, certificate of deposit, NOW account, or money market account in a solvent bank, savings and loan association, or credit union that is organized under the laws of the United States or a state, or in a branch of one of those financial institutions.(b)  An investment under this section must be made in accordance with the laws or regulations applicable to the bank, savings and loan association, or credit union.(c)  The amount of an insurance company's deposits in a single bank, savings and loan association, or credit union may not exceed the greater of:(1)  20 percent of the company's capital and surplus;(2)  the amount of federal or state deposit insurance coverage that applies to the deposits; or(3)  10 percent of the amount of capital, surplus, and undivided profits of the financial institution receiving the deposits. |Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|
TX Ins Code § 425.115 (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 C. Authorized Investments and Transactions for Capital Stock Life, Health, and Accident Insurers|Section 425.115. Authorized Investments: Equity Interests

Sec. 425.115.  AUTHORIZED INVESTMENTS:  EQUITY INTERESTS.  (a)  In this section, "business entity" means a real estate investment trust, corporation, limited liability company, association, limited partnership, joint venture, mutual fund, trust, joint tenancy, or other similar form of business organization, regardless of whether organized for profit.(b)  Subject to this section, an insurance company may invest in an equity interest, including common stock, an equity investment in an investment company other than a money market fund described by Section 425.123, a real estate investment trust, a limited partnership interest, a warrant, another right to acquire an equity interest that is created by the person that owns or would issue the equity in which the interest is acquired, and an equity interest in a business entity that is organized under the laws of the United States, a state of the United States, Canada, or a province or territory of Canada.(c)  If a market value from a generally recognized source is not available for an equity interest, the business entity or other investment in which the interest is acquired must be subject to:(1)  an annual audit by an independent certified public accountant; or(2)  another method of valuation acceptable to the commissioner.(d)  An insurance company may not invest in a partnership as a general partner except through an investment subsidiary.(e)  An insurance company's investments under this section in a single business entity, other than a money market fund described by Section 425.123, may not exceed 15 percent of the company's capital and surplus.(f)  The aggregate amount of an insurance company's investments under this section may not exceed 25 percent of the company's assets. |Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|
TX Ins Code § 425.116 (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 C. Authorized Investments and Transactions for Capital Stock Life, Health, and Accident Insurers|Section 425.116. Authorized Investments: Preferred Stock

Sec. 425.116.  AUTHORIZED INVESTMENTS:  PREFERRED STOCK.  (a)  Subject to this section, an insurance company may invest in preferred stock of a business entity, as defined by Section 425.110.(b)  An insurance company may invest in preferred stock only if:(1)  the stock is rated by the securities valuation office; and(2)  the sum of the company's aggregate investment in preferred stock rated 3, 4, 5, or 6 and the company's investments under Section 425.110(d) does not exceed the limitations specified by Section 425.110(d).(c)  An insurance company's investments in the preferred stock of a single business entity may not exceed 20 percent of the company's capital and surplus.(d)  The aggregate amount of an insurance company's investments in preferred stock as to which there is not a sinking fund for the redemption and retirement of the stock that meets the standards established by the National Association of Insurance Commissioners may not exceed 10 percent of the company's assets.(e)  The aggregate amount of an insurance company's investments under this section may not exceed 40 percent of the company's assets.|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|
TX Ins Code § 425.117 (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 C. Authorized Investments and Transactions for Capital Stock Life, Health, and Accident Insurers|Section 425.117. Authorized Investments: Collateral Loans

Sec. 425.117.  AUTHORIZED INVESTMENTS:  COLLATERAL LOANS.  (a)  Subject to this section, an insurance company may invest in a collateral loan secured by:(1)  a first lien on an asset; or(2)  a valid and perfected first security interest in an asset.(b)  The amount of a loan invested in under this section may not exceed 80 percent of the value of the collateral asset at any time during the duration of the loan.(c)  The asset used as collateral for a loan under this section must be an asset, other than real property described by Section 425.119, in which the insurance company is authorized by this subchapter to directly invest.|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|
TX Ins Code § 425.1185 (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 C. Authorized Investments and Transactions for Capital Stock Life, Health, and Accident Insurers|Section 425.1185. Authorized Investments: Mezzanine Real Estate Loans

Sec. 425.1185.  AUTHORIZED INVESTMENTS:  MEZZANINE REAL ESTATE LOANS.  (a)  In this section, "mezzanine real estate loan" means a loan that is secured by a pledge of direct or indirect equity interests in an entity that owns real estate.(b)  Subject to Subsections (c) and (d), an insurance company with more than $10 billion in admitted assets may invest in a mezzanine real estate loan if the loan documents:(1)  require that each pledgor abstain from granting an additional security interest in the equity interest pledged;(2)  employ techniques to minimize the likelihood or impact of a bankruptcy filing by the real estate owner or the mezzanine real estate loan borrower; and(3)  require the real estate owner or the mezzanine real estate loan borrower to:(A)  hold no assets other than, in the case of the owner, the real estate, and in the case of the borrower, the equity interests in the entity;(B)  not engage in any business other than, in the case of the owner, the ownership and operation of the real estate, and in the case of the borrower, holding an ownership interest in the owner; and(C)  not incur additional debt, other than limited trade payables, a first mortgage loan, or the mezzanine real estate loan.(c)  Before making an initial investment in a mezzanine real estate loan, an insurance company shall corroborate that the sum of the first mortgage on the real estate and the mezzanine real estate loan does not exceed 100 percent of the value of the current appraised value of the real estate.(d)  An insurance company's cumulative investment under this section may not exceed three percent of the insurance company's admitted assets.|Added by Acts 2015, 84th Leg., R.S., Ch. 310 (S.B. 1008), Sec. 1, eff. September 1, 2015.|
TX Ins Code § 425.120 (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 C. Authorized Investments and Transactions for Capital Stock Life, Health, and Accident Insurers|Section 425.120. Authorized Investments: Oil, Gas, and Minerals

Sec. 425.120.  AUTHORIZED INVESTMENTS:  OIL, GAS, AND MINERALS.  (a)  In this section:(1)  "Producing" means producing oil, gas, or other minerals in paying quantities.  A well that has been shut in is considered to be producing oil, gas, or other minerals in paying quantities if shut-in royalties are being paid.(2)  "Production payment" means a right to oil, gas, or other minerals in place or as produced that entitles the owner of the right to a specified fraction of production until the owner receives a specified amount of money, or a specified number of units of oil, gas, or other minerals.(3)  "Royalty" or "overriding royalty" means a right to oil, gas, and other minerals in place or as produced that entitles the owner of the right to a specified fraction of production without limitation to a specified amount of money or a specified number of units of oil, gas, or other minerals.(b)  Subject to this section, in addition to and without limitation on the purposes for which real property may be acquired, secured, held, or retained under other provisions of this subchapter, an insurance company may secure, hold, retain, and convey production payments, producing royalties, and producing overriding royalties, or participations in production payments, producing royalties, or producing overriding royalties as an investment for the production of income.(c)  An insurance company may not carry an asset described by Subsection (b) in an amount that exceeds 90 percent of the appraised value of the asset.(d)  A single investment under this section may not exceed 10 percent of the amount of the insurance company's capital and surplus that exceeds the statutory minimum capital and surplus applicable to the company.(e)  The aggregate amount of an insurance company's investments under this section may not exceed 10 percent of the company's assets as of December 31 preceding the date of the investment.|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|
TX Ins Code § 425.122 (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 C. Authorized Investments and Transactions for Capital Stock Life, Health, and Accident Insurers|Section 425.122. Authorized Investments: Premium Loans

Sec. 425.122.  AUTHORIZED INVESTMENTS: PREMIUM LOANS.  (a)  Subject to Subsection (b), an insurance company may make loans to finance the payment of premiums for the company's own insurance policies or annuity contracts.(b)  The amount of a loan under this section may not exceed the sum of:(1)  the available cash value of the insurance policy or annuity contract for which the premium loan is made; and(2)  the amount of any escrowed commissions payable relating to the insurance policy or annuity contract.|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|
TX Ins Code § 425.124 (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 C. Authorized Investments and Transactions for Capital Stock Life, Health, and Accident Insurers|Section 425.124. Authorized Investments: Risk Control Transactions

Sec. 425.124.  AUTHORIZED INVESTMENTS:  RISK CONTROL TRANSACTIONS.  Subject to Sections 425.126-425.132, an insurance company may use derivative instruments, as defined by Section 425.125, to engage in hedging transactions, replication transactions, and income generation transactions, as those terms are defined by Section 425.125.|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|