reglab/housing_qa huggingface dataset:
TX Ins Code § 422.003 (2021)
2021 Texas Statutes|Insurance Code|Title 4 - Regulation of Solvency|Subtitle B - Reserves and Investments|Chapter 422 - Asset Protection Act|Subchapter A. General Provisions|Section 422.003. Definitions

Sec. 422.003.  DEFINITIONS.  In this chapter:(1)  "Asset" means any property in which an insurer owns a legal or equitable interest that is reported as an asset in the domestic insurer's statutory financial statements most recently filed with the department.(2)  "Claimant" means an owner, beneficiary, assignee, certificate holder, or third-party beneficiary of an insurance benefit or right arising from the coverage of an insurance policy to which this chapter applies.(3)  "Reserve assets" means the assets of an insurer that are authorized investments for policy reserves under this code.(4)  "Policy reserve liabilities" means the liabilities that an insurer is required under this code to establish for all of the insurer's outstanding insurance policies.|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.Amended by: Acts 2021, 87th Leg., R.S., Ch. 61 (S.B. 1954), Sec. 2, eff. September 1, 2021.|
TX Ins Code § 422.004 (2021)
2021 Texas Statutes|Insurance Code|Title 4 - Regulation of Solvency|Subtitle B - Reserves and Investments|Chapter 422 - Asset Protection Act|Subchapter A. General Provisions|Section 422.004. Applicability of Chapter

Sec. 422.004.  APPLICABILITY OF CHAPTER.  This chapter applies to:(1)  the following domestic insurers:(A)  a stock life, health, or accident insurance company;(B)  a mutual life, health, or accident insurance company;(C)  a stock fire or casualty insurance company;(D)  a mutual fire or casualty insurance company;(E)  a title insurance company;(F)  a mutual assessment company;(G)  a local mutual aid association;(H)  a local mutual burial association;(I)  a statewide mutual assessment company;(J)  a stipulated premium company;(K)  a fraternal benefit society;(L)  a group hospital service corporation;(M)  a county mutual insurance company;(N)  a Lloyd's plan;(O)  a reciprocal or interinsurance exchange;(P)  a farm mutual insurance company; and(Q)  a mortgage guaranty insurer; and(2)  all kinds of insurance written by an insurer to which this chapter applies.|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|
TX Ins Code § 422.005 (2021)
2021 Texas Statutes|Insurance Code|Title 4 - Regulation of Solvency|Subtitle B - Reserves and Investments|Chapter 422 - Asset Protection Act|Subchapter A. General Provisions|Section 422.005. Exemptions

Sec. 422.005.  EXEMPTIONS.  (a)  This chapter does not apply to:(1)  variable contracts for which separate accounts are required to be maintained;(2)  a reinsurance agreement and any trust account related to the reinsurance agreement if the reinsurance agreement and related trust account meet the requirements of Chapter 493;(3)  an assessment-as-needed company or insurance coverage written by an assessment-as-needed company;(4)  an insurer while:(A)  the insurer is subject to a conservatorship order issued by the commissioner; or(B)  a court-appointed receiver is in charge of the insurer's affairs;(5)  an insurer's reserve assets that are held, deposited, pledged, or otherwise encumbered to secure, offset, protect, or meet the insurer's policy reserve liabilities established in a reinsurance agreement under which the insurer reinsures the insurance policy liabilities of a ceding insurer if:(A)  the ceding insurer and the reinsurer are authorized to engage in business in this state; and(B)  in accordance with a written agreement between the ceding insurer and the reinsurer, reserve assets substantially equal to the policy reserve liabilities the reinsurer must establish on the reinsured business are:(i)  deposited by or withheld from the reinsurer and held in the custody of the ceding insurer, or deposited and held in a trust account with a state or national bank domiciled in this state, as security for the payment of the reinsurer's obligations under the reinsurance agreement;(ii)  held subject to withdrawal by the ceding insurer; and(iii)  held under the separate or joint control of the ceding insurer; or(6)  any pledge, encumbrance, or lien contemplated by or customarily included in the documentation for:(A)  an investment or transaction authorized by:(i)  Section 424.068, Subchapter D, Chapter 424, or Section 425.121 or 425.151; or(ii)  Section 424.068, Subchapter E, Chapter 424, or Section 425.124, 425.125, 425.126, 425.127, 425.128, 425.129, 425.130, 425.131, or 425.132; and(B)  a custodial or trust agreement for an insurer's securities authorized by Section 423.103 that provides for a limited grant or lien or security interest for payment of fees and expenses due to a service provider or intermediary under the custodial or trust agreement.(b)  Notwithstanding this section, the commissioner may examine any asset, reinsurance agreement, or deposit arrangement described by Subsection (a)(5) at any time, in accordance with the commissioner's authority under this code to examine an insurer.|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.Amended by: Acts 2017, 85th Leg., R.S., Ch. 594 (S.B. 1070), Sec. 3.02, eff. September 1, 2017.Acts 2021, 87th Leg., R.S., Ch. 61 (S.B. 1954), Sec. 3, eff. September 1, 2021.|
TX Ins Code § 422.006 (2021)
2021 Texas Statutes|Insurance Code|Title 4 - Regulation of Solvency|Subtitle B - Reserves and Investments|Chapter 422 - Asset Protection Act|Subchapter A. General Provisions|Section 422.006. Conflict With Other Law

Sec. 422.006.  CONFLICT WITH OTHER LAW.  If this chapter conflicts with another law relating to the subject matter or application of this chapter, this chapter controls.|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|
TX Ins Code § 422.007 (2021)
2021 Texas Statutes|Insurance Code|Title 4 - Regulation of Solvency|Subtitle B - Reserves and Investments|Chapter 422 - Asset Protection Act|Subchapter A. General Provisions|Section 422.007. Rules

Sec. 422.007.  RULES.  The commissioner may adopt rules regarding the provisions of this chapter.|Added by Acts 2021, 87th Leg., R.S., Ch. 61 (S.B. 1954), Sec. 4, eff. September 1, 2021.|
TX Ins Code § 422.051 (2021)
2021 Texas Statutes|Insurance Code|Title 4 - Regulation of Solvency|Subtitle B - Reserves and Investments|Chapter 422 - Asset Protection Act|Subchapter B. Encumbrance of Assets|Section 422.051. Restrictions on Encumbrance of Assets

Sec. 422.051.  RESTRICTIONS ON ENCUMBRANCE OF ASSETS.  (a)  An insurer shall at all times maintain unencumbered assets in an amount equal to the insurer's policy reserve liabilities.(b)  An insurer may not pledge or otherwise encumber:(1)  the insurer's assets in an amount that exceeds the amount of the insurer's capital and surplus; or(2)  more than 10 percent of the insurer's reserve assets.(b-1)  The calculation of the quantitative limits in Subsections (a) and (b) must be based on the statutory financial statements for the insurer most recently filed with the department as of the date compliance is determined.  The date that a pledge or encumbrance is made is the date used to determine compliance with the limits in Subsection (b). (b-2)  Compliance with the quantitative limits in Subsection (b) is achieved when, on the date of determination of compliance, the sum of the value of a proposed pledge or encumbrance, when added to the values of the sum of all previous and still outstanding pledges and encumbrances, does not exceed any quantitative limit in Subsection (b).(c)  Notwithstanding any other provision of this section, on application made to the commissioner, the commissioner may issue a written order approving the pledge or encumbrance of an insurer's asset in any amount if the commissioner determines that the pledge or encumbrance will not adversely affect the insurer's solvency.|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.Amended by: Acts 2021, 87th Leg., R.S., Ch. 61 (S.B. 1954), Sec. 5, eff. September 1, 2021.|
TX Ins Code § 422.052 (2021)
2021 Texas Statutes|Insurance Code|Title 4 - Regulation of Solvency|Subtitle B - Reserves and Investments|Chapter 422 - Asset Protection Act|Subchapter B. Encumbrance of Assets|Section 422.052. Report to Commissioner

Sec. 422.052.  REPORT TO COMMISSIONER.  (a)  Not later than the 10th day after the date an insurer pledges or otherwise encumbers an asset, the insurer shall report in writing to the commissioner:(1)  the amount and identity of the pledged or encumbered asset; and(2)  the terms of the transaction.(b)  Annually, or more often as required by the commissioner, the insurer shall file with the commissioner a statement sworn to by the insurer's chief executive officer that:(1)  title to assets that equal the amount of the insurer's policy reserve liabilities and that are not pledged or otherwise encumbered is vested in the insurer;(2)  the only assets of the insurer that are pledged or otherwise encumbered are those identified and reported in the sworn statement, and no other assets of the insurer are pledged or otherwise encumbered; and(3)  the terms of the transaction pledging or otherwise encumbering the assets are those reported in the sworn statement.(c)  The insurer is not required to file the report described by Subsection (a) for a pledge or encumbrance permitted in a transaction approved by the commissioner under Section 1152.055.|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.Amended by: Acts 2021, 87th Leg., R.S., Ch. 61 (S.B. 1954), Sec. 6, eff. September 1, 2021.|
TX Ins Code § 422.053 (2021)
2021 Texas Statutes|Insurance Code|Title 4 - Regulation of Solvency|Subtitle B - Reserves and Investments|Chapter 422 - Asset Protection Act|Subchapter B. Encumbrance of Assets|Section 422.053. Claimant Lien on Certain Assets

Sec. 422.053.  CLAIMANT LIEN ON CERTAIN ASSETS.  (a)  A person, corporation,  association, governmental entity, or any other legal entity that accepts as security for an insurer's debt or other obligation a pledge or encumbrance of an asset of the insurer that is not made in accordance with this chapter is considered to have accepted the asset subject to a superior, preferential, and automatically perfected lien in favor of a claimant of the insurer.(b)  Subsection (a) does not apply to:(1)  an asset of an insurer in conservatorship or receivership if the commissioner in the conservatorship proceeding, or the court in which the receivership is pending, approves the pledge or encumbrance of the asset; or(2)  a pledge or encumbrance of an asset permitted in a transaction approved by the commissioner under Section 1152.055.|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.Amended by: Acts 2021, 87th Leg., R.S., Ch. 61 (S.B. 1954), Sec. 7, eff. September 1, 2021.|
TX Ins Code § 422.054 (2021)
2021 Texas Statutes|Insurance Code|Title 4 - Regulation of Solvency|Subtitle B - Reserves and Investments|Chapter 422 - Asset Protection Act|Subchapter B. Encumbrance of Assets|Section 422.054. Preferential Claims on Liquidation

Sec. 422.054.  PREFERENTIAL CLAIMS ON LIQUIDATION.  If an insurer is involuntarily or voluntarily liquidated, a claimant of the insurer has a prior and preferential claim against all assets of the insurer other than the assets that have been pledged or encumbered in accordance with this chapter or the assets that are subject to a pledge or encumbrance of an asset described by Section 422.053(b)(2).  All claimants have equal status, and their prior and preferential claim is superior to any claim or cause of action against the insurer by any other person, corporation, association, or legal entity.|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.Amended by: Acts 2021, 87th Leg., R.S., Ch. 61 (S.B. 1954), Sec. 8, eff. September 1, 2021.|
TX Ins Code § 423.001 (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 A. General Provisions|Section 423.001. Applicability of Chapter

Sec. 423.001.  APPLICABILITY OF CHAPTER.  (a)  This chapter applies to a domestic insurer regulated under this code, including:(1)  a stock company;(2)  a reciprocal or interinsurance exchange;(3)  a Lloyd's plan;(4)  a fraternal benefit society;(5)  a stipulated premium company;(6)  a mutual insurance company of any kind, including:(A)  a statewide mutual assessment company;(B)  a local mutual aid association;(C)  a burial association;(D)  a county mutual insurance company; and(E)  a farm mutual insurance company; and(7)  any other organization or person engaged in the business of insurance.(b)  A provision of this code limiting the regulation of an insurer under this code does not limit the application of this chapter, except that this chapter does not apply to an insurer that is exempted from its application by another statute that cites this chapter.|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|
TX Ins Code § 423.002 (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 A. General Provisions|Section 423.002. Ambiguities and Conflicts With Other Law

Sec. 423.002.  AMBIGUITIES AND CONFLICTS WITH OTHER LAW.  This chapter controls to the extent of an ambiguity or a conflict between this chapter and another provision of this code.|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|
TX Ins Code § 423.003 (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 A. General Provisions|Section 423.003. Rules

Sec. 423.003.  RULES.  The commissioner may 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 § 423.004 (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 A. General Provisions|Section 423.004. Statutory Deposits With Department

Sec. 423.004.  STATUTORY DEPOSITS WITH DEPARTMENT.  (a)  Except as provided by Subsection (c), notwithstanding any requirement under this code that an insurer deposit with the comptroller money or other assets for the security of an insurer's policyholders or creditors, including a deposit required by another state, an insurer may deposit the required money or other assets with the department in accordance with this section.(b)  A deposit authorized by Subsection (a):(1)  must be approved by the commissioner;(2)  is subject to any requirements applicable to the type of deposit;(3)  must be held under the commissioner's control; and(4)  may not be substituted or withdrawn by the insurer without the commissioner's approval.(c)  This section does not apply to any deposit made under Chapter 406 or a deposit of fees or taxes under this code.|Added by Acts 2015, 84th Leg., R.S., Ch. 263 (S.B. 1427), Sec. 1, eff. September 1, 2015.|
TX Ins Code § 423.051 (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 B. Transactions With Money|Section 423.051. Deposit and Investment of Money

Sec. 423.051.  DEPOSIT AND INVESTMENT OF MONEY.  A director, member of a committee, officer, or clerk of a domestic insurer who has the duty to handle or invest the insurer's money may not:(1)  invest the money other than in the corporate name of the insurer, except as provided by Section 423.102;(2)  deposit the money unless the deposit is:(A)  in the corporate name of the insurer;(B)  in a pooling account with one or more affiliates, as described by Section 823.003; or(C)  in accordance with a reinsurance agreement;(3)  borrow the insurer's money;(4)  have any interest in a loan, pledge, security, or property of the insurer, except as a stockholder; or(5)  take or receive for the individual's use a fee, brokerage, commission, gift, or other consideration for, or on account of, a loan made by or on behalf of the insurer.|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|
TX Ins Code § 423.052 (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 B. Transactions With Money|Section 423.052. Money Held in Pooling Account

Sec. 423.052.  MONEY HELD IN POOLING ACCOUNT.  (a)  Only a domestic insurer and an affiliate, as described by Section 823.003, may hold money in a pooling account.(b)  The accounting and operating records and books of the insurer and affiliate must be adequately detailed to identify specific insurance policies and policyholders with the money from premiums received by the insurer that issues the policies.|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|
TX Ins Code § 423.053 (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 B. Transactions With Money|Section 423.053. Authority to Deposit Money in Account of Reinsurer

Sec. 423.053.  AUTHORITY TO DEPOSIT MONEY IN ACCOUNT OF REINSURER.  A reinsurance agreement between a domestic insurer and an affiliate, as described by Section 823.003, must specifically authorize the deposit of money from premiums to the account of the affiliate that assumes the reinsurance.|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|
TX Ins Code § 423.101 (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 423.101. Definition

Sec. 423.101.  DEFINITION.  In this subchapter, "clearing corporation" means:(1)  a clearing corporation as defined by Section 8.102(a), Business & Commerce Code; or(2)  a clearance system that:(A)  is organized or operating under the laws of at least one foreign country;(B)  provides for book-entry settlement and custody of internationally traded securities; and(C)  has been organized and in operation for not less than 15 consecutive years.|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|
TX Ins Code § 423.102 (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 423.102. Deposit and Holding of Securities

Sec. 423.102.  DEPOSIT AND HOLDING OF SECURITIES.  (a)  A domestic insurer that has securities held in or purchased for the insurer's general account or separate accounts may deposit the securities or arrange through an agent, broker, or dealer for deposit of the securities with a clearing corporation or in the Federal Reserve book-entry system.(b)  If securities are deposited directly with a clearing corporation or deposited indirectly through a participating custodian bank, certificates representing securities of the same class of the same issuer may be merged and held in bulk, in the name of a nominee of the clearing corporation, with any other securities deposited with the clearing corporation by any person, regardless of the ownership of the securities.(c)  Certificates under Subsection (b) that represent securities of small denominations may be merged into one or more certificates of larger denominations.(d)  The records of an agent, broker, dealer, or member bank through which an insurer holds securities in the Federal Reserve book-entry system and the records of a custodian bank through which an insurer holds securities with a clearing corporation must show that the securities are held for the insurer and show the accounts for which the securities are held.(e)  A bank must enter into a custodial agreement with an insurer to be eligible to act as a participating custodian bank for the insurer under this section.|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|
TX Ins Code § 423.103 (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 423.103. Securities Held Under Custodial or Trust Agreement

Sec. 423.103.  SECURITIES HELD UNDER CUSTODIAL OR TRUST AGREEMENT.  A domestic insurer's securities that are held under a custodial agreement or trust agreement with a bank, Federal Home Loan Bank, or trust company may be issued in the name of a nominee of the bank, Federal Home Loan Bank, or trust company only if the bank, Federal Home Loan Bank, or trust company:(1)  has corporate trust powers;(2)  is authorized to act as a custodian or trustee;(3)  is organized under the laws of the United States or any state of the United States; and(4)  meets one of the following requirements:(A)  is a member of the Federal Reserve System;(B)  is a member of or is eligible to receive deposits that are insured by the Federal Deposit Insurance Corporation;(C)  maintains an account with a Federal Reserve Bank and is subject to supervision and examination by the Board of Governors of the Federal Reserve System; or(D)  is subject to supervision and examination by the Federal Housing Finance Board.|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|
TX Ins Code § 423.104 (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 423.104. Proof of Ownership of Securities

Sec. 423.104.  PROOF OF OWNERSHIP OF SECURITIES.  (a)  A domestic insurer may demonstrate ownership of a security through a definitive certificate or in accordance with rules adopted under this section.(b)  The commissioner shall adopt rules under which a domestic insurer may demonstrate ownership of an uncertificated security, as defined by Section 8.102(a), Business & Commerce Code, consistent with common practices of securities exchanges and markets.  The rules must establish:(1)  standards for the types of uncertificated securities the insurer may hold;(2)  the manner in which the insurer may demonstrate ownership of the security; and(3)  adequate financial safeguards relating to the ownership of uncertificated securities.|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|
TX Ins Code § 423.105 (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 423.105. Mandatory Deposit of Securities; Commissioner Control

Sec. 423.105.  MANDATORY DEPOSIT OF SECURITIES; COMMISSIONER CONTROL.  (a)  An insurer that is required to deposit securities as a condition of engaging in the business of insurance in this state may deposit the securities with a clearing corporation or in the Federal Reserve book-entry system.(b)  Securities under Subsection (a) are under the commissioner's control and may not be withdrawn by the insurer without the commissioner's approval.|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|