Texas Insurance Code - Section 425.105. Written Investment Plan
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§ 425.105. WRITTEN INVESTMENT PLAN. (a) Each insurance
company's board of directors or, if the company does not have a
board of directors, the corresponding authority designated by the
company's charter, bylaws, or plan of operation, shall adopt a
written investment plan consistent with this subchapter.
(b) The investment plan must:
(1) specify the diversification of the insurance
company's investments, so as to reduce the risk of large losses, by:
(A) broad categories, such as bonds and real
property loans;
(B) kinds, such as government obligations,
obligations of business entities, mortgage-backed securities, and
real property loans on office, retail, industrial, or residential
properties;
(C) quality;
(D) maturity;
(E) industry; and
(F) geographical areas, as to both domestic and
foreign investments;
(2) balance safety of principal with yield and growth;
(3) seek a reasonable relationship of assets and
liabilities as to term and nature; and
(4) be appropriate considering the capital and surplus
and the business conducted by the company.
(c) At least annually, the board of directors or
corresponding authority shall review the adequacy of the investment
plan and the implementation of the plan.
(d) An insurance company shall maintain the company's
investment plan in the company's principal office and provide the
plan to the commissioner or the commissioner's designee on request.
The commissioner or the commissioner's designee shall maintain the
plan as a privileged and confidential document. The plan is not
subject to public disclosure.
Added by Acts 2005, 79th Leg., ch. 727, § 1, eff. April 1, 2007.
Section: 425.068 425.069 425.070 425.101 425.102 425.103 425.104 425.105 425.106 425.107 425.108 425.109 425.110 425.111 425.112
Last modified: August 11, 2007
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