Texas Insurance Code

§ 406.004 — REQUIRED DEPOSIT: FORM OF SECURITY

IN § 406.004Title 4. REGULATION OF SOLVENCY · Part A. GENERAL PROVISIONS · Ch. 406. SPECIAL DEPOSITS REQUIRED UNDER POTENTIALLY

Statute text

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A deposit required under Section 406.003 must be made with the comptroller and approved by the commissioner. The deposit must be made in:

(1)cash;

(2)securities authorized under this code to be a legal investment for the insurer that:

(A)are readily marketable over a national exchange with a maturity date of not more than one year, are listed by the Securities Valuation Office of the National Association of Insurance Commissioners, and qualify as admitted assets; or

(B)are clean, irrevocable, and unconditional letters of credit issued or confirmed by a financial institution organized and licensed under the laws of the United States or a state of the United States; or

(3)another form of security acceptable to the commissioner.

Legislative history

Added by Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 1C.001, eff. April 1, 2009.