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Texas Insurance Code - Section 424.073. Authorized Investments: Insurer Engaged In Business In Foreign Country

Legal Research Home > Texas Lawyer > Insurance Code > Texas Insurance Code - Section 424.073. Authorized Investments: Insurer Engaged In Business In Foreign Country

§ 424.073. AUTHORIZED INVESTMENTS:  INSURER ENGAGED IN 
BUSINESS IN FOREIGN COUNTRY.  (a) Subject to this section, an 
insurer authorized by the law of a foreign country to engage in a 
line of insurance in which the insurer is authorized to engage in 
this state may invest in foreign securities originating in the 
foreign country of the same kind as the domestic securities 
originating in the United States in which the insurer is authorized 
to invest under Sections 424.051, 424.053-424.071, and 424.074.
	(b)  The aggregate amount of an insurer's investments made 
under this section in a single country may not exceed by more than 
10 percent at any time the lesser of:
		(1)  the amount of funds required by the law of the 
foreign country to be maintained in securities originating in that 
country;  or
		(2)  the amount of total unearned premium reserves, 
reinsurance reserves, loss reserves, and any other liabilities 
required by the law of this state to be carried by the insurer that 
are directly attributable to the particular insurance policies or 
contracts on residents or property located in the foreign country.
	(c)  This section does not authorize an insurer to invest in 
a foreign security originating in a foreign country with respect to 
which the president of the United States or other federal authority 
has refused to exercise the authority to issue guarantees on 
projects in the country to citizens or corporations of the United 
States against loss by reason of inconvertibility of currency, 
expropriation, confiscation, war, revolution, or insurrection 
because the foreign country has failed to enter into arrangements 
for the security of American property as required by the president 
or other federal authority for the issuance of those guarantees.

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

Last modified: August 10, 2007