Texas Insurance Code 424.111 – Pooling Agreement Provisions
Terms Used In Texas Insurance Code 424.111
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Person: includes corporation, organization, government or governmental subdivision or agency, business trust, estate, trust, partnership, association, and any other legal entity. See Texas Government Code 311.005
- Trustee: A person or institution holding and administering property in trust.
- United States: includes a department, bureau, or other agency of the United States of America. See Texas Government Code 311.005
The pooling agreement for an investment pool must provide that:
(1) 100 percent of the ownership interests in the pool must at all times be held by:
(A) an insurer and the insurer’s affiliated insurers;
(B) for a pool investing solely in investments authorized under Section 424.104, the insurer and the insurer’s subsidiaries and affiliates or any pension or profit-sharing plan of the insurer and the insurer’s subsidiaries and affiliates; or
(C) for a United States branch of an alien insurer, subsidiaries or affiliates of the insurer’s United States manager;
(2) the pool’s underlying assets are held solely for the benefit of each participant and may not be commingled with the general assets of the pool manager or any other person;
(3) each participant owns an undivided interest in the pool’s underlying assets in proportion to the aggregate amount of the participant’s interest in the pool; and
(4) a pool participant or, if a pool participant is insolvent, bankrupt, or in receivership, the participant’s trustee, receiver, conservator, or other successor-in-interest may withdraw all or any portion of the participant’s investment from the pool under the terms of the pooling agreement.