Texas Insurance Code 424.053 – Limitation as to Single Issuer or Borrower
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(a) Notwithstanding Sections 424.051, 424.056-424.071, and 424.074, the aggregate amount of an insurer’s investments in all or any type of securities, loans, obligations, or evidences of indebtedness of a single issuer or borrower, other than investments described by Subsection (c), may not exceed five percent of the insurer’s total assets.
(b) For purposes of this section, a single issuer or borrower includes:
(1) the issuer’s or borrower’s majority-owned subsidiaries;
(2) the issuer’s or borrower’s parent; or
(3) the majority-owned subsidiaries of the issuer’s or borrower’s parent.
Terms Used In Texas Insurance Code 424.053
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- United States: includes a department, bureau, or other agency of the United States of America. See Texas Government Code 311.005
(c) This section does not apply to:
(1) an authorized investment that:
(A) is a direct obligation of or guaranteed by the full faith and credit of the United States, this state, or a political subdivision of this state; or
(B) is insured by an agency of the United States or this state; or
(2) an investment described by Section 424.061 or 424.063.