Texas Insurance Code

§ 823.253 — GENERAL STANDARD FOR INVESTMENT IN AFFILIATE

IN § 823.253Title 6. ORGANIZATION OF INSURERS AND RELATED ENTITIES · Part B. ORGANIZATION OF REGULATED ENTITIES · Ch. 823. INSURANCE HOLDING COMPANY SYSTEMS · Art. F. INSURER'S LOANS TO OR INVESTMENT IN AFFILIATE

Statute text

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(a)A domestic insurer may invest in the securities of one or more of the insurer's affiliates organized for any lawful purpose if:

(1)the amounts invested under this subsection in the aggregate do not exceed the lesser of:

(A)10 percent of the insurer's assets; or

(B)50 percent of the insurer's policyholders' surplus; and

(2)after investment under this subsection, the insurer's policyholders' surplus is reasonable in relation to the insurer's outstanding liabilities and adequate to the insurer's financial needs.

(b)For purposes of computing the amount of the investments under this section:

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Legislative history

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.