Texas Insurance Code 228.154 – Certified Capital Not Invested in Qualified Investments
Terms Used In Texas Insurance Code 228.154
- Comptroller: means the state comptroller of public accounts. See Texas Government Code 312.011
- Guarantor: A party who agrees to be responsible for the payment of another party's debts should that party default. Source: OCC
- in writing: includes any representation of words, letters, or figures, whether by writing, printing, or other means. See Texas Government Code 312.011
- United States: includes a department, bureau, or other agency of the United States of America. See Texas Government Code 311.005
A certified capital company shall invest any certified capital not invested in qualified investments only in:
(1) cash deposited with a federally insured financial institution;
(2) certificates of deposit in a federally insured financial institution;
(3) investment securities that are:
(A) obligations of the United States or agencies or instrumentalities of the United States; or
(B) obligations that are guaranteed fully as to principal and interest by the United States;
(4) debt instruments rated at least “A” or the equivalent by a nationally recognized credit rating organization, or issued by, or guaranteed with respect to payment by, an entity whose unsecured indebtedness is rated at least “A” or the equivalent by a nationally recognized credit rating organization, and which indebtedness is not subordinated to other unsecured indebtedness of the issuer or the guarantor;
(5) obligations of this state or a municipality or political subdivision of this state; or
(6) any other investment approved in advance in writing by the comptroller.