Texas Insurance Code 425.208 – Authorized Investments for All Funds: Bank and Bank Holding Company Stocks
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(a) Subject to this section, an insurer may invest any of the insurer’s funds and accumulations in:
(1) the stock of a state or national bank that is a member of the Federal Deposit Insurance Corporation; and
(2) the stock of a bank holding company as defined by the Bank Holding Company Act of 1956 (12 U.S.C. § 1841 et seq.), as amended by the Bank Holding Company Act Amendments of 1970 (12 U.S.C. § 1841 et seq. and Section 1971 et seq.).
(b) An insurer’s investment in the stock of a bank or bank holding company may not exceed:
(1) 20 percent of the total outstanding shares of the stock of the bank or bank holding company; or
(2) 10 percent of the insurer’s admitted assets.
Terms Used In Texas Insurance Code 425.208
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- National Bank: A bank that is subject to the supervision of the Comptroller of the Currency. The Office of the Comptroller of the Currency is a bureau of the U.S. Treasury Department. A national bank can be recognized because it must have "national" or "national association" in its name. Source: OCC