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Texas Insurance Code - Section 424.068. Authorized Investments: Investment In Foreign Jurisdiction

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§ 424.068. AUTHORIZED INVESTMENTS:  INVESTMENT IN FOREIGN 
JURISDICTION.  (a) In addition to the investments in Canada 
authorized by Sections 424.051, 424.058-424.071, and 424.074 and 
subject to this section, an insurer may invest the insurer's funds 
in excess of minimum capital and surplus in an investment in a 
foreign commonwealth, territory, or possession of the United 
States, a foreign country other than Canada, or a foreign security 
originating in one of those commonwealths, territories, 
possessions, or countries, if:
		(1)  the investment is similar to investments the 
insurer is authorized by Sections 424.051, 424.058-424.071, and 
424.074 to make within the United States or Canada;  and
		(2)  if a debt obligation, the investment is rated one 
or two by the securities valuation office.
	(b)  The aggregate amount of an insurer's investments under 
Sections 424.051, 424.058-424.071, and 424.074 in a single foreign 
jurisdiction may not exceed:
		(1)  as to a foreign jurisdiction that is given a 
sovereign debt rating of one by the securities valuation office, 10 
percent of the insurer's admitted assets;  or
		(2)  as to any other foreign jurisdiction, five percent 
of the insurer's admitted assets.
	(c)  The amount of investments made under this section may 
not exceed the sum of:
		(1)  the amounts authorized by Section 424.073;  and                          
		(2)  20 percent of the insurer's assets.                                      
	(d)  The combined total of the amount of investments made 
under this section, the amount of similar investments made within 
the United States and Canada, and any amounts of investments 
authorized by Section 424.073 may not exceed any limitation 
prescribed by Sections 424.051, 424.058-424.071, and 424.074.

Added by Acts 2005, 79th Leg., ch. 727, § 1, eff. April 1, 2007.           

Last modified: August 10, 2007