Texas Insurance Code - Section 425.109. Authorized Investments: Government Obligations
Legal Research Home >
Texas Lawyer > Insurance Code > Texas Insurance Code - Section 425.109. Authorized Investments: Government Obligations
§ 425.109. AUTHORIZED INVESTMENTS: GOVERNMENT
OBLIGATIONS. (a) An insurance company may invest in:
(1) a bond, evidence of indebtedness, or other
obligation of the United States;
(2) a bond, evidence of indebtedness, or other
obligation guaranteed as to principal and interest by the full
faith and credit of the United States;
(3) a bond, evidence of indebtedness, or other
obligation of an agency or instrumentality of the United States
government; and
(4) subject to Subsections (b) and (c), a bond,
evidence of indebtedness, or other obligation of a governmental
unit in the United States, Canada, or any province or municipality
of Canada, or of an instrumentality of one of those governmental
units.
(b) An insurance company may not invest in a bond, evidence
of indebtedness, or other obligation under Subsection (a)(4) if the
governmental unit or instrumentality is in default in the payment
of principal of or interest on any of the governmental unit's or
instrumentality's obligations.
(c) An insurance company's investments in the obligations
of a single governmental unit or instrumentality under Subsection
(a)(4) may not exceed 20 percent of the company's capital and
surplus.
Added by Acts 2005, 79th Leg., ch. 727, § 1, eff. April 1, 2007.
Section: 425.102 425.103 425.104 425.105 425.106 425.107 425.108 425.109 425.110 425.111 425.112 425.113 425.114 425.115 425.116
Last modified: August 11, 2007
|
