Sec. 424.053. LIMITATION AS TO SINGLE ISSUER OR BORROWER. (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 of indebtedness of a single issuer or borrower, other than investments described by Subsection (c), may not exceed five percent of the insurer's total assets.
(b) For purposes of this section, a single issuer or borrower includes:
(1) the issuer's or borrower's majority-owned subsidiaries;
(2) the issuer's or borrower's parent; or
(3) the majority-owned subsidiaries of the issuer's or borrower's parent.
(c) This section does not apply to:
(1) an authorized investment that:
(A) is a direct obligation of or guaranteed by the full faith and credit of the United States, this state, or a political subdivision of this state; or
(B) is insured by an agency of the United States or this state; or
(2) an investment described by Section 424.061 or 424.063.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.
Section: Previous 424.001 424.002 424.051 424.052 424.053 424.054 424.055 424.056 424.057 424.058 424.059 424.060 424.061 424.062 424.063 NextLast modified: September 28, 2016