reglab/housing_qa huggingface dataset:
TX Ins Code § 423.106 (2021)
2021 Texas Statutes|Insurance Code|Title 4 - Regulation of Solvency|Subtitle B - Reserves and Investments|Chapter 423 - Transactions With Money and Other Assets|Subchapter C. Transactions With Other Assets|Section 423.106. Required Evidence for Securities

Sec. 423.106.  REQUIRED EVIDENCE FOR SECURITIES.  (a)  An insurer that deposits securities under Section 423.105 shall provide evidence to the commissioner to establish that:(1)  the securities are recorded in an account in the name of:(A)  the participating custodian bank or member bank through which the insurer deposits the securities with a clearing corporation or in the Federal Reserve book-entry system; or(B)  the insurer, if the insurer makes the deposit directly with the clearing corporation as a direct participant; and(2)  the records of the participating custodian bank, direct participant, or member bank and of the clearing corporation show that the securities are under the commissioner's control.(b)  Evidence under Subsection (a)(1) must be issued, as applicable, by:(1)  the participating custodian bank;(2)  the member bank; or(3)  the insurer, when the insurer makes the deposit directly with the clearing corporation as a direct participant. |Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|
TX Ins Code § 423.107 (2021)
2021 Texas Statutes|Insurance Code|Title 4 - Regulation of Solvency|Subtitle B - Reserves and Investments|Chapter 423 - Transactions With Money and Other Assets|Subchapter C. Transactions With Other Assets|Section 423.107. Assets Deposited With Clearing Corporation

Sec. 423.107.  ASSETS DEPOSITED WITH CLEARING CORPORATION.  A domestic insurer may deposit assets with a clearing corporation only if:(1)  the insurer is a member of an insurance holding company system that has assets of at least $5 billion, as shown by annual statements of member insurers for the preceding year;(2)  the insurer uses the clearing corporation only as a depository for investments in internationally traded securities;(3)  the insurer's total investment in internationally traded securities under Subdivision (2) does not exceed the insurer's policyholders' surplus; and(4)  the insurer does not use securities deposited with the clearing corporation as security for reinsurance.|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|
TX Ins Code § 423.108 (2021)
2021 Texas Statutes|Insurance Code|Title 4 - Regulation of Solvency|Subtitle B - Reserves and Investments|Chapter 423 - Transactions With Money and Other Assets|Subchapter C. Transactions With Other Assets|Section 423.108. Limitation on Assets Deposited With Clearing Corporation

Sec. 423.108.  LIMITATION ON ASSETS DEPOSITED WITH CLEARING CORPORATION.  The commissioner by rule may adopt a reasonable limit on the percentage of a domestic insurer's assets that may be deposited with a clearing corporation.  The limit may not exceed five percent of the insurer's total assets, as shown by the insurer's annual statement filed with the department for the year preceding the year for which the limit is adopted.|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|
TX Ins Code § 424.001 (2021)
2021 Texas Statutes|Insurance Code|Title 4 - Regulation of Solvency|Subtitle B - Reserves and Investments|Chapter 424 - Investments for Certain Insurers|Subchapter A. General Provisions|Section 424.001. Definitions

Sec. 424.001.  DEFINITIONS.  In this chapter:(1)  "Insurer" means any insurer organized under the laws of this state other than an insurer writing life, health, and accident insurance.(2)  "Minimum capital and surplus" means the minimum amount of capital stock and minimum amount of surplus required of an insurer under Section 822.054 or 822.210.(3)  "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 § 424.002 (2021)
2021 Texas Statutes|Insurance Code|Title 4 - Regulation of Solvency|Subtitle B - Reserves and Investments|Chapter 424 - Investments for Certain Insurers|Subchapter A. General Provisions|Section 424.002. Inapplicability of Certain Law

Sec. 424.002.  INAPPLICABILITY OF CERTAIN LAW.  The definition of "state" assigned by Section 311.005, Government Code, does not apply to this chapter. |Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|
TX Ins Code § 424.051 (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 424.051. General Investment Authority Specified by Law

Sec. 424.051.  GENERAL INVESTMENT AUTHORITY SPECIFIED BY LAW.  An insurer may not invest the insurer's funds in excess of minimum capital and surplus, except that an insurer may invest as otherwise authorized by this code.|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|
TX Ins Code § 424.052 (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 424.052. Additional General Investment Authority

Sec. 424.052.  ADDITIONAL GENERAL INVESTMENT AUTHORITY.  An insurer may make investments that are not otherwise authorized by this chapter or otherwise authorized by this code for the insurer if:(1)  the investment is not specifically prohibited by law and does not exceed the limits prescribed by this code;(2)  the amount of a single investment under this section does not exceed five percent of the insurer's capital and surplus in excess of the insurer's minimum capital and surplus; and(3)  the aggregate amount of all investments made by the insurer under this section does not exceed five percent of the insurer's assets.|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|
TX Ins Code § 424.053 (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 424.053. Limitation as to Single Issuer or Borrower

Sec. 424.053.  LIMITATION AS TO SINGLE ISSUER OR BORROWER.  (a)  Notwithstanding Sections 424.051, 424.056-424.071, and 424.074, the aggregate amount of an insurer's investments in all or any type of securities, loans, obligations, or evidences of indebtedness of a single issuer or borrower, other than investments described by Subsection (c), may not exceed five percent of the insurer's total assets.(b)  For purposes of this section, a single issuer or borrower includes:(1)  the issuer's or borrower's majority-owned subsidiaries;(2)  the issuer's or borrower's parent; or(3)  the majority-owned subsidiaries of the issuer's or borrower's parent.(c)  This section does not apply to:(1)  an authorized investment that:(A)  is a direct obligation of or guaranteed by the full faith and credit of the United States, this state, or a political subdivision of this state; or(B)  is insured by an agency of the United States or this state; or(2)  an investment described by Section 424.061 or 424.063.|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|
TX Ins Code § 424.054 (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 424.054. Applicability of Percentage Authorizations and Limitations

Sec. 424.054.  APPLICABILITY OF PERCENTAGE AUTHORIZATIONS AND LIMITATIONS.  (a)  The percentage authorizations and limitations established by Sections 424.051, 424.053-424.071, and 424.074 apply only at the time an investment is originally acquired or a transaction is entered into and do not apply to the insurer or the investment or transaction after that time.(b)  An investment, once qualified under a law described by Subsection (a), remains qualified notwithstanding any refinancing, restructuring, or modification of the investment, except that an insurer may not refinance, restructure, or modify an investment solely to circumvent the requirements or limitations of a law described by Subsection (a).|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|
TX Ins Code § 424.055 (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 424.055. Waiver by Commissioner of Quantitative Limitations

Sec. 424.055.  WAIVER BY COMMISSIONER OF QUANTITATIVE LIMITATIONS.  (a)  Notwithstanding Sections 424.051, 424.056-424.071, and 424.074, the commissioner may waive a quantitative limitation on any investment authorized by those laws if:(1)  the insurer seeks the waiver before making the investment;(2)  a hearing is held to determine whether the waiver should be granted;(3)  the applicant seeking the waiver establishes that unreasonable or unnecessary loss or harm will result to the insurer if the commissioner denies the waiver;(4)  the excess investment will not have a material adverse effect on the insurer; and(5)  the size of the investment is reasonable in relation to the insurer's assets, capital, surplus, and liabilities.(b)  The commissioner's waiver must be in writing and may treat the resulting excess investment as a nonadmitted asset.|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|
TX Ins Code § 424.056 (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 424.056. Written Investment Plan

Sec. 424.056.  WRITTEN INVESTMENT PLAN.  (a)  Each insurer's board of directors, or, if the insurer does not have a board of directors, the corresponding authority designated by the insurer's charter, bylaws, or plan of operation, shall adopt a written investment plan consistent with the requirements of:(1)  this chapter;(2)  Sections 822.204, 822.209, 861.258, and 862.002; and(3)  other statutes governing investments by the insurer.(b)  The investment plan must:(1)  specify the diversification of the insurer's investments designed 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)  type of 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 insurer.(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 insurer shall maintain the insurer's investment plan in the insurer'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 § 424.057 (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 424.057. Investment Records

Sec. 424.057.  INVESTMENT RECORDS.  An insurer shall maintain investment records covering each transaction.  The insurer must be able to demonstrate at all times to the department that the insurer's investments are within the limitations imposed by the statutes listed in Section 424.056(a).|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|
TX Ins Code § 424.058 (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 424.058. Authorized Investments: Form of Minimum Capital and Surplus

Sec. 424.058.  AUTHORIZED INVESTMENTS: FORM OF MINIMUM CAPITAL AND SURPLUS.  An insurer may invest the insurer's funds in excess of minimum capital and surplus in any manner authorized by Section 822.204 for investment of the insurer's minimum capital and surplus.|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|
TX Ins Code § 424.059 (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 424.059. Authorized Investments: Government Obligations

Sec. 424.059.  AUTHORIZED INVESTMENTS: GOVERNMENT OBLIGATIONS.  An insurer may invest the insurer's funds in excess of minimum capital and surplus in a bond or other evidence of indebtedness of any state or of Canada or a province of Canada that:(1)  is issued by the authority of law; and(2)  at the time of purchase:(A)  bears interest; and(B)  is not in default as to principal or interest.|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|
TX Ins Code § 424.060 (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 424.060. Authorized Investments: Stock of National or State Bank

Sec. 424.060.  AUTHORIZED INVESTMENTS: STOCK OF NATIONAL OR STATE BANK.  (a)  An insurer may invest the insurer's funds in excess of minimum capital and surplus in the stock of:(1)  a national bank; or(2)  a state bank of this state whose deposits are insured by the Federal Deposit Insurance Corporation.(b)  Notwithstanding Subsection (a)(2):(1)  not more than 35 percent of the total outstanding stock of a single state bank may be purchased by a single insurer; and(2)  if an insurer has invested the insurer's funds in 35 percent of a state bank's stock under this section, no other insurer may invest funds in the bank's remaining stock.|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|
TX Ins Code § 424.061 (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 424.061. Authorized Investments: Deposits in Certain Financial Institutions

Sec. 424.061.  AUTHORIZED INVESTMENTS: DEPOSITS IN CERTAIN FINANCIAL INSTITUTIONS.  (a)  Subject to this section, an insurer 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 insurer's deposits in a single bank, savings and loan association, or credit union may not exceed the greater of:(1)  20 percent of the insurer'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 § 424.062 (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 424.062. Authorized Investments: Certain Obligations of Partnership or Corporation

Sec. 424.062.  AUTHORIZED INVESTMENTS: CERTAIN OBLIGATIONS OF PARTNERSHIP OR CORPORATION.  (a)  Except as provided by this section, an insurer may invest the insurer's funds in excess of minimum capital and surplus in a stock, bond, debenture, bill of exchange, evidence of indebtedness, other commercial note or bill, or security of any partnership or dividend-paying corporation that:(1)  is incorporated under the laws of the United States, this state, another state, Canada, or a province of Canada;(2)  is solvent at the time of the investment; and(3)  has not defaulted in the payment of any of the partnership's or corporation's obligations during the five years preceding the date of the investment.(b)  Except as provided by Subsection (d), an insurer may invest the insurer's funds in excess of minimum capital and surplus, and all reserves required by law, in a stock, bond, or debenture of any solvent corporation that is incorporated under the laws of the United States, this state, another state, Canada, or a province of Canada.(c)  Funds invested under Subsection (a) may not be invested in the stock of an oil, manufacturing, or mercantile corporation unless the corporation has, at the time of the investment:(1)  a net worth of at least $250,000, if the corporation is organized under the laws of this state; or(2)  a combined capital, surplus, and undivided profits of at least $2.5 million, if the corporation is not organized under the laws of this state.(d)  An insurer may not invest the insurer's funds in:(1)  the insurer's own stock or in any stock on account of which the holders or owners of the stock may be liable for an assessment other than taxes;  or(2)  any stock, bond, or other security issued by a corporation with respect to which a majority of the stock having voting powers is directly or indirectly owned by or for the benefit of an officer or director of the insurer, unless the insurer has been in continuous operation for at least five years.|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|Sec. 424.063.  AUTHORIZED INVESTMENTS: MUTUAL FUNDS.  An insurer may invest the insurer's funds in excess of minimum capital and surplus in shares of a mutual fund engaged in business under the Investment Company Act of 1940 (15 U.S.C. Section 80a-1 et seq.), as amended, if:(1)  the mutual fund is solvent and has at least $1 million of net assets as of the date of the mutual fund's latest annual or more recent certified audited financial statement; and(2)  the amount of the insurer's investment in a single mutual fund does not exceed 15 percent of the insurer's capital and surplus.|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|
TX Ins Code § 424.064 (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 424.064. Authorized Investments: Real Property

Sec. 424.064.  AUTHORIZED INVESTMENTS: REAL PROPERTY.  (a)  Subject to this section, an insurer may invest the insurer's funds in excess of minimum capital and surplus in real property to the extent authorized by other provisions of this code.(b)  An insurer with admitted assets of more than $500 million may own investment real property other than real property authorized by another provision of this code, or participations in that other investment real property, if the property is materially enhanced in value by:(1)  the construction of durable, permanent-type buildings and other improvements that cost an amount at least equal to the cost of the real property, excluding buildings and improvements at the time the property is acquired; or(2)  the construction, commenced before the second anniversary of the date the real property is acquired, of buildings and improvements described by Subdivision (1).(c)  The amount invested by an insurer in a single investment real property and improvements, or in any interest in real property and improvements, may not exceed five percent of the insurer's admitted assets in excess of $500 million.  The total amount invested by an insurer in investment real property and improvements may not exceed 15 percent of the insurer's admitted assets in excess of $500 million.(d)  Except as provided by Section 862.002, an insurer may not own, develop, or hold an equity interest in any residential property or subdivision, single or multiunit family dwelling property, or undeveloped real property to subdivide for or develop residential, single or multiunit family dwellings.  This subsection does not apply to an insurer with admitted assets of $10 billion or more.(e)  The investment authority granted by this section is in addition to and separate from the investment authority granted by Section 862.002, except that an insurer may not invest in any real property that, when added to properties acquired by the insurer under Section 862.002, would exceed the limitations prescribed by that section.(f)  An insurer's admitted assets are determined from the insurer's annual statements that are made as of the December 31 that precedes the date of the determination and are filed with the department as required by law.  The value of any investment made under this section is subject to the appraisal requirement of Section 862.002.|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.Amended by: Acts 2013, 83rd Leg., R.S., Ch. 1175 (S.B. 841), Sec. 1, eff. September 1, 2013.|
TX Ins Code § 424.065 (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 424.065. Acting as Real Estate Broker or Salesperson Prohibited

Sec. 424.065.  ACTING AS REAL ESTATE BROKER OR SALESPERSON PROHIBITED.  An insurer defined in Section 822.001 or 822.201 or another insurer specifically made subject to Sections 424.051, 424.053-424.071, and 424.074 may not engage in the business of a broker or salesperson as defined by Chapter 1101, Occupations Code, except that the insurer may hold, improve, maintain, manage, rent, lease, sell, exchange, or convey any of the real property interests legally owned as investments under this code.|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|