Texas Insurance Code - Section 424.062. Authorized Investments: Certain Obligations Of Partnership Or Corporation
Legal Research Home >
Texas Lawyer > Insurance Code > Texas Insurance Code - Section 424.062. Authorized Investments: Certain Obligations Of Partnership Or Corporation
§ 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, § 1, eff. April 1, 2007.
Section: 424.055 424.056 424.057 424.058 424.059 424.060 424.061 424.062 424.063 424.064 424.065 424.066 424.067 424.068 424.069
Last modified: August 11, 2007
|
