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Texas Insurance Code - Section 425.113. Authorized Investments: Deposits In Certain Financial Institutions

Legal Research Home > Texas Lawyer > Insurance Code > Texas Insurance Code - Section 425.113. Authorized Investments: Deposits In Certain Financial Institutions

§ 425.113. AUTHORIZED INVESTMENTS:  DEPOSITS IN CERTAIN 
FINANCIAL INSTITUTIONS.  (a) Subject to this section, an insurance 
company may invest in any type of savings deposit, time deposit, 
certificate of deposit, NOW account, or money market account in a 
solvent bank, savings and loan association, or credit union that is 
organized under the laws of the United States or a state, or in a 
branch of one of those financial institutions.
	(b)  An investment under this section must be made in 
accordance with the laws or regulations applicable to the bank, 
savings and loan association, or credit union.
	(c)  The amount of an insurance company's deposits in a 
single bank, savings and loan association, or credit union may not 
exceed the greater of:
		(1)  20 percent of the company's capital and surplus;                         
		(2)  the amount of federal or state deposit insurance 
coverage that applies to the deposits;  or
		(3)  10 percent of the amount of capital, surplus, and 
undivided profits of the financial institution receiving the 
deposits.

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

Last modified: August 11, 2007