Texas Insurance Code

§ 425.222 — AUTHORIZED INVESTMENTS FOR CAPITAL, SURPLUS, AND CONTINGENCY FUNDS: LIFE INCOME INTERESTS IN QUALIFIED TRUSTS

IN § 425.222Title 4. REGULATION OF SOLVENCY · Part B. RESERVES AND INVESTMENTS · Ch. 425. RESERVES AND INVESTMENTS FOR LIFE INSURANCE · Art. D. AUTHORIZED INVESTMENTS AND TRANSACTIONS FOR OTHER LIFE, HEALTH, AND ACCIDENT INSURERS

Statute text

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(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 express testamentary trust.

(b)For purposes of this section, a trust is a qualified trust if:

(1)each fee simple recipient of any part of the corpus of the trust:

(A)is a public charity, church, educational institution, or scientific institution;

(B)is located in this state; and

(C)is recognized by the United States Internal Revenue Service as exempt from payment of income taxes;

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Legislative history

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