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Texas Insurance Code - Chapter 425 Reserves And Investments For Life Insurance Companies And Related EntitiesLegal Research Home > Texas Lawyer > Insurance Code > Texas Insurance Code - Chapter 425 Reserves And Investments For Life Insurance Companies And Related Entities Sponsored LinksThe commissioner, after determining the amount of the reserves required on all of a life insurance company's policies in force, shall ensure that the company ... (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 ... (a) A life insurance company that, before August 28, 1961, issued or assumed the obligations of policies or annuity contracts that were registered as provided ... Each life insurance company that is required by Section 425.003 to have securities on deposit with the department shall: (1) keep records of: (A) all ... (a) The department shall keep securities deposited by a life insurance company under Sections 425.002 and 425.003 in a secure safe-deposit, fireproof box or vault ... (a) If a life insurance company engaged in business under the laws of this state has written or assumed risks that are substandard or extra ... (a) A life insurance company organized under the laws of this state may not: (1) subscribe to, or participate in, any underwriting of the purchase ... A foreign company shall invest the company's assets in: (1) securities or property of the same classes in which the law of this state permits ... A foreign or domestic life insurance company may make loans to a student enrolled in an institution of higher education if the principal amount of ... This subchapter may be cited as the Standard Valuation Law. Added by Acts 2005, 79th Leg., ch. 727, § 1, eff. April 1, 2007. ... (a) In this subchapter, "reserves" means reserve liabilities. (b) As used in this subchapter: (1) an "issue year basis" of valuation means a valuation basis ... (a) The department shall annually value or have valued the reserves for all outstanding life insurance policies and annuity and pure endowment contracts of each ... (a) For purposes of this section, "qualified actuary" means: (1) a qualified actuary, as that term is defined by Section 802.002; or (2) a person ... (a) A memorandum that, in form and substance, complies with the commissioner's rules shall be prepared to support each actuarial opinion required by Section 425.054. ... (a) Except in cases of fraud or wilful misconduct or as provided by Subsection (b), a person who certifies an opinion under Section 425.054 is ... A company or person that certifies an opinion under Section 425.054 and that violates Section 425.054 or 425.055 or rules adopted under those sections is ... (a) Except as otherwise provided by Section 425.059, 425.060, 425.061, 425.062, or 425.063, the minimum standard for the valuation of an outstanding life insurance policy ... (a) This section applies to an individual annuity or pure endowment contract issued on or after January 1, 1979, and an annuity or pure endowment ... The calendar year statutory valuation interest rates as defined by Sections 425.061, 425.062, and 425.063 are the interest rates used in determining the minimum standard ... (a) For purposes of Subsection (b): (1) R1 is the lesser of R or .09; (2) R2 is the greater of R or .09; (3) ... (a) This section prescribes the weighting factors referred to in the formulas prescribed by Section 425.061. (b) The weighting factor for a life insurance policy ... (a) In this section, "Moody's Corporate Bond Yield Average" means the Moody's Corporate Bond Yield Average--Monthly Average Corporates, as published by Moody's Investors Service, Inc. ... (a) Except as otherwise provided by Sections 425.065 and 425.068 and subject to Subsection (b), for the life insurance and endowment benefits of a policy ... (a) This section applies to an annuity or pure endowment contract other than a group annuity or pure endowment contract purchased under a retirement or ... (a) An insurance company's aggregate reserves for all life insurance policies, excluding disability or accidental death benefits, issued by the company on or after the ... (a) Reserves for a policy or contract issued by a life insurance company before the date on which Chapter 1105 would apply to the policy ... (a) If in a contract year the gross premium charged by a life insurance company on a policy or contract is less than the valuation ... (a) For a life insurance plan that provides for future premium determination, the amounts of which are to be determined by the insurance company based ... (a) The reserve for a policy or contract issued by a life insurance company before the date on which Chapter 1105 would apply to the ... In this subchapter: (1) "Assets" means the statutory accounting admitted assets of an insurance company. The term includes lawful money of the United States, whether ... The definition of "state" assigned by Section 311.005, Government Code, does not apply to this subchapter. Added by Acts 2005, 79th Leg., ch. 727, § ... (a) This subchapter and rules adopted to interpret and implement this subchapter apply to all domestic insurance companies as defined in Section 841.001 and to ... The purpose of this subchapter is to protect and further the interests of insureds, insurance companies, creditors, and the public by providing standards for development ... (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 ... An insurance company shall maintain investment records covering each transaction. The company must be able to demonstrate at all times that the company's investments are ... (a) The department shall, after consulting with the insurance industry of this state and the office of public insurance counsel, develop a report of insurance ... (a) Subject to the limitations and restrictions imposed by this subchapter, and, unless otherwise specified, based on the insurance company's capital, surplus, and admitted assets ... (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 ... (a) In this section: (1) "Business entity" includes a sole proprietorship, corporation, association, general or limited partnership, limited liability company, joint- stock company, joint venture, ... (a) Subject to this section, an insurance company may invest in bonds issued, assumed, or guaranteed by: (1) the Inter-American Development Bank; (2) the International ... An insurance company may invest in loans on the security of the company's own policies in an amount that does not exceed the amount of ... (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 ... (a) In this section, "affiliate" means, with respect to a person, another person that, directly or indirectly through one or more intermediaries, controls, is controlled ... (a) In this section, "business entity" means a real estate investment trust, corporation, limited liability company, association, limited partnership, joint venture, mutual fund, trust, joint ... (a) Subject to this section, an insurance company may invest in preferred stock of a business entity, as defined by Section 425.110. (b) An insurance ... (a) Subject to this section, an insurance company may invest in a collateral loan secured by: (1) a first lien on an asset; or (2) ... (a) Subject to this section, an insurance company may invest in a note, an evidence of indebtedness, or a participation in a note or evidence ... (a) Subject to this section, an insurance company may invest in a real property fee simple or leasehold estate located in the United States. (b) ... (a) In this section: (1) "Producing" means producing oil, gas, or other minerals in paying quantities. A well that has been shut in is considered ... (a) In this section: (1) "Dollar roll transaction" means two simultaneous transactions with settlement dates not more than 96 days apart, in one of which ... (a) Subject to Subsection (b), an insurance company may make loans to finance the payment of premiums for the company's own insurance policies or annuity ... (a) An insurance company may invest in a money market fund as described by 17 C.F.R. Section 270.2a-7 under the Investment Company Act of 1940 ... Subject to Sections 425.126-425.132, an insurance company may use derivative instruments, as defined by Section 425.125, to engage in hedging transactions, replication transactions, and income ... In Sections 425.124-425.132: (1) "Acceptable collateral" means cash, cash equivalents, letters of credit, and direct obligations, or securities that are fully guaranteed as to principal ... (a) Before an insurance company enters into a derivative transaction, the company' s board of directors must approve a derivative use plan as part of ... An insurance company that enters into a derivative transaction shall establish written internal control procedures that provide for: (1) a quarterly report to the board ... (a) An insurance company must be able to demonstrate to the commissioner on request the intended hedging characteristics and continuing effectiveness of a derivative transaction ... An insurance company may enter into an income generation transaction only if: (1) as a result of and after making the transaction, the sum of ... (a) An insurance company may enter into a replication transaction only with the prior written approval of the commissioner, and only if: (1) the company ... For purposes of Sections 425.124-425.132, each derivative instrument must be: (1) traded on a securities exchange; (2) entered into with, or guaranteed by, a business ... (a) Subject to this section, an insurance company may purchase or sell one or more derivative instruments to wholly or partly offset a derivative instrument ... (a) In addition to the investments within Canada authorized by this subchapter and subject to this section, an insurance company may make investments within another ... (a) Subject to this section, an insurance company may make an investment that is not otherwise authorized by this subchapter and that is not specifically ... (a) An insurance company may continue to hold an investment held by the company on January 1, 1986, that does not conform to the requirement ... The percentage authorizations and limitations established by this subchapter apply only at the time an investment is originally acquired or a transaction is entered into ... (a) The qualification or disqualification of an investment under one section of this subchapter does not prevent the investment from qualifying, wholly or partly, under ... (a) This subchapter does not prohibit an insurance company from acquiring additional obligations, securities, or other assets received as a dividend or as a distribution ... (a) This section takes precedence over Sections 425.109-425.120, 425.122-425.153, and 425.155(a), (b), and (c). (b) An insurance company's investments in all or any types of ... (a) The commissioner may waive a quantitative limitation on any investment authorized by Sections 425.109-425.132 and 425.151-425.156 if: (1) the insurer seeks the waiver before ... (a) Each insurance company shall maintain reasonable, adequate, and accurate evidence of the company's ownership of the company's assets and investments. (b) An insurance company ... (a) Subject to this section, if a domestic insurance company assumes and reinsures the business of and takes over the assets of another domestic insurance ... A domestic insurance company or another insurance company specifically made subject to this subchapter may not engage in the business of a broker or salesperson ... The commissioner may adopt rules, minimum standards, or limitations that are fair and reasonable as appropriate to supplement and implement this subchapter. Added by Acts ... In this subchapter, "contingency funds" means an insurer's contingency funds over and above the amount of the insurer's policy reserves. Added by Acts 2005, 79th ... This subchapter applies only to an insurer organized under Chapter 881, 884, 885, 886, 887, or 2551, except as specifically provided by those chapters. Added ... (a) An insurer may not use the insurer's funds to make an investment or loan that is not authorized by this subchapter. (b) An insurer ... (a) An insurer may not make an investment unless the investment has been authorized by the insurer's board of directors or by a committee responsible ... (a) Subject to this section, an insurer may invest any of the insurer's funds and accumulations in: (1) a bond, treasury bill, note, or certificate ... (a) Subject to Subsection (e), an insurer may invest any of the insurer's funds and accumulations in a first mortgage bond or first lien note ... (a) Subject to this section, an insurer may invest any of the insurer's funds and accumulations in a share, stock, share or savings account, or ... (a) Subject to this section, an insurer may invest any of the insurer's funds and accumulations in: (1) the stock of a state or national ... (a) Subject to this section, an insurer may invest any of the insurer's funds and accumulations in: (1) a debenture of a solvent public utility ... (a) Subject to this section, an insurer may invest any of the insurer's funds and accumulations in: (1) preferred stock of a solvent public utility ... An insurer may invest any of the insurer's funds and accumulations in bonds issued, assumed, or guaranteed by: (1) the Inter-American Development Bank; (2) the ... An insurer may invest any of the insurer's funds and accumulations in a security or investment authorized or described by: (1) Section 65.013, Finance Code; ... An insurer may invest any of the insurer's funds and accumulations in: (1) an adequately secured equipment trust obligation or certificate or another adequately secured ... (a) Subject to this section, an insurer may loan any of the insurer's funds and accumulations and take as collateral a first lien on real ... An insurer may loan any of the insurer's funds and accumulations and take as collateral an obligation secured by a first lien on real property ... (a) Subject to Subsection (b), an insurer may loan any of the insurer's funds and accumulations and take as collateral an insurance policy issued by ... An insurer may loan any of the insurer's funds and accumulations and take as collateral for the loan any security described by Sections 425.205-425.213 and ... (a) Notwithstanding any express or implied prohibitions, and subject to this section, an insurer may invest any of the insurer's funds and accumulations in an ... An insurer may invest the insurer's policy reserves and surplus over and above the insurer's capital in municipal bonds issued under Section 51.039, Water Code. ... (a) Subject to this section and Section 425.226, an insurer may invest the insurer's capital, surplus, and contingency funds in the capital stock, bonds, bills ... Subject to Section 425.226, an insurer may invest the insurer's capital, surplus, and contingency funds in a bond or note of an educational or religious ... (a) Subject to this section, an insurer may invest the insurer's capital, surplus, and contingency funds in a life income interest in a qualified irrevocable ... (a) Subject to Subsection (b), an insurer may invest the insurer's capital, surplus, and contingency funds in not more than 20 percent of the capital ... (a) Subject to this section, an insurer may loan the insurer's capital, surplus, and contingency funds and take as collateral the capital stock, bonds, bills ... (a) An insurer authorized to engage in business in a foreign country may invest in securities of that country that are the same kind of ... An insurer may not invest any of the insurer's funds in a stock, the holder or owner of which is or may become liable for ... The investment powers granted by Sections 425.207 and 425.208 may not be construed as restricting the powers granted by Sections 425.220 and 425.221. Added by ... (a) Subject to this section, if a domestic insurer assumes the business and takes over the assets of another domestic or a foreign insurer, all ... (a) Subject to this section, an insurer may secure, hold, and convey the following real property: (1) one building site and office building for the ... (a) In this section and Section 425.231: (1) "Producing" means producing oil, gas, or other minerals in paying quantities. A well that has been shut ... (a) Subject to this section, an insurer may secure, hold, and convey the following real property: (1) real property acquired in good faith as security ... (a) In this section, "improved income-producing real property" includes all commercial and industrial real property, a substantial portion of which has been materially enhanced in ... Last modified: August 11, 2007 |