Texas Insurance Code 424.070 – Authorized Investments: Obligations of Local Governmental Entities
(a) Subject to this section, an insurer may invest the insurer’s funds in excess of minimum capital and surplus in a bond or other interest-bearing evidence of indebtedness of a:
(1) county or subdivision of a county;
(2) municipality;
(3) road district;
(4) turnpike district or authority;
(5) water district;
(6) school district;
(7) sanitary or navigation district; or
(8) municipally owned revenue water system, sewer system, or electric utility company with respect to which the municipality has appropriated, pledged, or otherwise provided for special revenues to meet the principal and interest payments of the bond or other evidence of indebtedness.
(b) A bond or other evidence of indebtedness of a navigation district is an authorized investment under this section only if:
(1) the navigation district is located wholly or partly in a county that has a population of at least 100,000; and
(2) the interest due on the bond or other evidence of indebtedness has never been in default.
Terms Used In Texas Insurance Code 424.070
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- Population: means the population shown by the most recent federal decennial census. See Texas Government Code 311.005