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Texas Insurance Code - Section 425.002. Certain Insurers: Deposit Of Securities, Money, Or Property In Amount Of Legal Reserves

Legal Research Home > Texas Lawyer > Insurance Code > Texas Insurance Code - Section 425.002. Certain Insurers: Deposit Of Securities, Money, Or Property In Amount Of Legal Reserves

§ 425.002. CERTAIN INSURERS:  DEPOSIT OF SECURITIES, 
MONEY, OR PROPERTY IN AMOUNT OF LEGAL RESERVES.  (a) Except as 
provided by Subsection (b), a life insurance company incorporated 
under the laws of this state may deposit with the department for the 
common benefit of all the holders of the company's policies and 
annuity contracts and in an amount equal to the legal reserve on all 
the company's outstanding policies and contracts in force, 
securities of the character in which the law of this state permits 
the company to invest, or against which the law of this state 
permits the company to loan, the company's capital, surplus, or 
reserves.
	(b)  A life insurance company may not make a new deposit of 
securities after August 28, 1961, except to the extent expressly 
required by Section 425.003.
	(c)  For purposes of this section, securities may be 
physically delivered to the department without being accompanied by 
a written transfer of a lien securing the securities.  A life 
insurance company may deposit registered or unregistered United 
States government securities under this section.
	(d)  A life insurance company may deposit lawful money of the 
United States instead of all or part of the securities described by 
Subsection (a).  A company may, for the purposes of the deposit 
described by Subsection (a), convey to the department in trust the 
real property in which any part of the company's reserve is lawfully 
invested.  If the company conveys the property, the department 
shall hold the title to the property in trust until the company 
deposits with the department securities to take the place of the 
property, at which time the department shall reconvey the property 
to the company.
	(e)  The department may have any securities or real property 
appraised and valued before the securities or real property may be 
deposited with or conveyed to the department under this section.  
The life insurance company shall pay the reasonable expense of the 
appraisal or valuation.
	(f)  For purposes of state, county, and municipal taxation, 
the situs of the deposited securities is the municipality and 
county in which the life insurance company's charter requires the 
principal business office of the company making the deposit to be 
located.

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

Last modified: August 11, 2007