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Texas Insurance Code - Chapter 424 Investments For Certain InsurersLegal Research Home > Texas Lawyer > Insurance Code > Texas Insurance Code - Chapter 424 Investments For Certain Insurers In this chapter: (1) "Insurer" means any insurer organized under the laws of this state other than an insurer writing life, health, and accident insurance. ... The definition of "state" assigned by Section 311.005, Government Code, does not apply to this chapter. Added by Acts 2005, 79th Leg., ch. 727, § ... An insurer may not invest the insurer's funds in excess of minimum capital and surplus, except that an insurer may invest as otherwise authorized by ... An insurer may make investments that are not otherwise authorized by this chapter or otherwise authorized by this code for the insurer if: (1) the ... (a) Notwithstanding Sections 424.051, 424.056-424.071, and 424.074, the aggregate amount of an insurer's investments in all or any type of securities, loans, obligations, or evidences ... (a) The percentage authorizations and limitations established by Sections 424.051, 424.053-424.071, and 424.074 apply only at the time an investment is originally acquired or a ... (a) Notwithstanding Sections 424.051, 424.056-424.071, and 424.074, the commissioner may waive a quantitative limitation on any investment authorized by those laws if: (1) the insurer ... (a) Each insurer's board of directors, or, if the insurer does not have a board of directors, the corresponding authority designated by the insurer's charter, ... An insurer shall maintain investment records covering each transaction. The insurer must be able to demonstrate at all times to the department that the insurer's ... An insurer may invest the insurer's funds in excess of minimum capital and surplus in any manner authorized by Section 822.204 for investment of the ... An insurer may invest the insurer's funds in excess of minimum capital and surplus in a bond or other evidence of indebtedness of any state ... (a) An insurer may invest the insurer's funds in excess of minimum capital and surplus in the stock of: (1) a national bank; or (2) ... (a) Subject to this section, an insurer may invest in any type of savings deposit, time deposit, certificate of deposit, NOW account, or money market ... (a) Except as provided by this section, an insurer may invest the insurer's funds in excess of minimum capital and surplus in a stock, bond, ... An insurer may invest the insurer's funds in excess of minimum capital and surplus in shares of a mutual fund engaged in business under the ... (a) Subject to this section, an insurer may invest the insurer's funds in excess of minimum capital and surplus in real property to the extent ... An insurer defined in Section 822.001 or 822.201 or another insurer specifically made subject to Sections 424.051, 424.053-424.071, and 424.074 may not engage in the ... (a) Subject to this section, an insurer may invest the insurer's funds in excess of minimum capital and surplus in a bond, note, or evidence ... An insurer may invest the insurer's funds in excess of minimum capital and surplus in: (1) an adequately secured equipment trust obligation, certificate, or other ... (a) In addition to the investments in Canada authorized by Sections 424.051, 424.058-424.071, and 424.074 and subject to this section, an insurer may invest the ... An insurer may invest the insurer's funds in excess of minimum capital and surplus in a loan on the pledge of any mortgage, stock, bond, ... (a) Subject to this section, an insurer may invest the insurer's funds in excess of minimum capital and surplus in a bond or other interest ... An insurer may invest the insurer's funds in excess of minimum capital and surplus in an interest-bearing note or bond of The University of Texas ... An insurer may invest the insurer's funds in excess of minimum capital and surplus in bonds issued, assumed, or guaranteed by any of the following ... (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 ... An insurer may invest the insurer's funds in excess of minimum capital and surplus in: (1) a savings account as authorized by Chapter 65, Finance ... In this subchapter: (1) "Business entity" means an association, corporation, joint stock company, joint venture, limited liability company, mutual fund trust, partnership, or other similar ... An insurer may acquire investments and participate in an investment pool that is qualified under Section 424.103(b) and the investments of which are limited to ... (a) An investment pool must be a business entity. (b) To be qualified, an investment pool must: (1) have a written pooling agreement and a ... A short-term investment pool may contain only: (1) obligations described by Section 424.105; (2) money market funds described by Section 424.106; or (3) repurchase, reverse ... (a) Obligations contained in a short-term investment pool must meet the requirements of this section. (b) The obligations must: (1) have a rating by the ... A short-term investment pool may contain a money market fund as described by 17 C.F.R. Section 270.2a-7 under the Investment Company Act of 1940 (15 ... (a) An authorized investment pool may contain only investments that a participating insurer is authorized to acquire by provisions of this code other than this ... An insurer may not acquire an investment in an investment pool if, as a result of and after making the investment, the aggregate amount of ... (a) The pooling agreement for an investment pool must designate a pool manager. (b) The pool manager must be organized under the laws of the ... (a) The pool manager shall maintain the assets of the investment pool in one or more accounts, in the name of or on behalf of ... The pooling agreement for an investment pool must provide that: (1) 100 percent of the ownership interests in the pool must at all times be ... (a) A pool participant must be able to make withdrawals on demand without penalty or other assessment on any business day, and settlement of funds ... The pool manager shall compile and maintain: (1) detailed accounting records that show: (A) the cash receipts and disbursements reflecting each pool participant's proportionate investment ... The pool manager shall make records of the investment pool available for inspection by the commissioner. Added by Acts 2005, 79th Leg., ch. 727, § ... (a) A transaction between an investment pool and a pool participant is not subject to Subchapter C, Chapter 823, except that before entering into a ... In this subchapter: (1) "Dollar roll transaction" means two simultaneous transactions with settlement dates not more than 96 days apart, in one of which an ... An insurer may engage in dollar roll, repurchase, reverse repurchase, and securities lending transactions as provided by this subchapter. Added by Acts 2005, 79th Leg., ... An insurer must enter into a written agreement for each transaction under this subchapter, other than a dollar roll transaction. The agreement must require that ... With respect to cash received in a transaction under this subchapter, an insurer shall: (1) invest the cash in accordance with this subchapter and in ... (a) While a transaction under this subchapter is outstanding, the insurer or the insurer's agent or custodian shall maintain, as to acceptable collateral received in ... (a) An insurer may not enter into a transaction under this subchapter if, as a result of and after making the transaction, the aggregate amount ... The commissioner may adopt reasonable rules and issue reasonable orders as necessary to implement this subchapter. Added by Acts 2005, 79th Leg., ch. 727, § ... In this subchapter: (1) "Acceptable collateral" means: (A) cash; (B) cash equivalents; (C) letters of credit and direct obligations; or (D) securities that are fully ... (a) Except as provided by Subsection (b), an insurer may engage in a risk control transaction authorized by this subchapter to: (1) protect the insurer's ... (a) Before an insurer with a statutory net capital and surplus of less than $10 million engages in a transaction authorized under this subchapter, the ... Each derivative instrument must be: (1) traded on a securities exchange; (2) entered into with, or guaranteed by, a business entity; (3) issued or written ... (a) Before an insurer enters into a derivative transaction, the insurer's board of directors must approve a derivative use plan as part of the insurer's ... An insurer that enters into a derivative transaction shall establish written internal control procedures that require: (1) a quarterly report to the board of directors ... An insurer must be able to demonstrate to the commissioner on request the intended hedging characteristics and continuing effectiveness of a derivative transaction or combination ... (a) Subject to this section, an insurer may purchase or sell one or more derivative instruments to wholly or partly offset a derivative instrument previously ... The insurer shall include all counterparty exposure amounts in determining compliance with the limitations of this subchapter. Added by Acts 2005, 79th Leg., ch. 727, ... (a) Not later than the 10th day before the date an insurer is scheduled to enter into an initial hedging transaction, the insurer shall notify ... After providing notice under Section 424.210, an insurer may enter into a hedging transaction under this subchapter if as a result of and after making ... An insurer may enter into an income generation transaction only if: (1) as a result of and after making the transaction, the sum of the ... If an income generation transaction is a sale of a call option on assets, the insurer must, during the entire period the option is outstanding, ... (a) If an income generation transaction is a sale of a put option on assets, the insurer must: (1) during the entire period the option ... If an income generation transaction is a sale of a call option on a derivative instrument, including a swaption, the insurer must: (1) during the ... If an income generation transaction is a sale of a cap or a floor, the insurer must, during the entire period the cap or floor ... (a) An insurer may enter into a replication transaction only with the prior written approval of the commissioner. (b) To be eligible for approval by ... The commissioner may adopt rules consistent with this subchapter that prescribe reasonable limits, standards, and guidelines for: (1) the risk control transactions authorized under this ... Texas Lawyers
Last modified: August 10, 2007 |