Texas Insurance Code
§ 425.119 — AUTHORIZED INVESTMENTS: REAL PROPERTY
IN § 425.119Title 4. REGULATION OF SOLVENCY · Part B. RESERVES AND INVESTMENTS · Ch. 425. RESERVES AND INVESTMENTS FOR LIFE INSURANCE · Art. C. AUTHORIZED INVESTMENTS AND TRANSACTIONS FOR CAPITAL STOCK LIFE, HEALTH, AND ACCIDENT INSURERS
Statute text
View on source(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)An insurance company may invest in home and branch office real property or a participation in home or branch office real property. At least 30 percent of the available space in a building used as a home or branch office must be occupied for the business purposes of the company and the company's affiliates. A company's aggregate investment in home and branch office real property may not exceed 20 percent of the company's assets.
(c)An insurance company may invest in real property other than home and branch office real property or participations in home and branch office real property. A company's investment under this subsection in a single piece of property or in an interest in a single piece of property, including improvements, fixtures, and equipment relating to the property, may not exceed five percent of the company's assets.
(d)Investment real property held under Subsection (b) or (c) must be materially enhanced in value by:
(1)the construction of durable, permanent-type buildings and other improvements that cost an amount at least equal to the cost of the real property, excluding buildings and improvements at the time the real property is acquired; or
(2)the construction, commenced before the second anniversary of the date the real property is acquired, of buildings and improvements described by Subdivision (1).
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Legislative history
Acts 2013, 83rd Leg., R.S., Ch. 1175 (S.B. 841), Sec. 3, eff. September 1, 2013.