Texas Insurance Code

§ 423.107 — ASSETS DEPOSITED WITH CLEARING CORPORATION

IN § 423.107Title 4. REGULATION OF SOLVENCY · Part B. RESERVES AND INVESTMENTS · Ch. 423. TRANSACTIONS WITH MONEY AND OTHER ASSETS · Art. C. TRANSACTIONS WITH OTHER ASSETS

Statute text

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A domestic insurer may deposit assets with a clearing corporation only if:

(1)the insurer is a member of an insurance holding company system that has assets of at least $5 billion, as shown by annual statements of member insurers for the preceding year;

(2)the insurer uses the clearing corporation only as a depository for investments in internationally traded securities;

(3)the insurer's total investment in internationally traded securities under Subdivision (2) does not exceed the insurer's policyholders' surplus; and

(4)the insurer does not use securities deposited with the clearing corporation as security for reinsurance.

Legislative history

Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.