§ 424.053 — LIMITATION AS TO SINGLE ISSUER OR BORROWER.

Texas § 424.053

• Jurisdiction: Texas
• Code IN: Insurance Code

Text

Sec. 424.053. LIMITATION AS TO SINGLE ISSUER OR BORROWER. (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.
(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 .

Legislative History

Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017 ), Sec. 1, eff. April 1, 2007.