Texas Insurance Code - Section 424.061. Authorized Investments: Deposits In Certain Financial Institutions
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§ 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, § 1, eff. April 1, 2007.
Section: 424.054 424.055 424.056 424.057 424.058 424.059 424.060 424.061 424.062 424.063 424.064 424.065 424.066 424.067 424.068
Last modified: August 11, 2007
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