Texas Insurance Code - Section 424.053. Limitation As To Single Issuer Or Borrower
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§ 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, § 1, eff. April 1, 2007.
Section: 423.106 423.107 423.108 424.001 424.002 424.051 424.052 424.053 424.054 424.055 424.056 424.057 424.058 424.059 424.060
Last modified: August 11, 2007
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