§ 424.056 — WRITTEN INVESTMENT PLAN.

Texas § 424.056

• Jurisdiction: Texas
• Code IN: Insurance Code

Text

Sec. 424.056. WRITTEN INVESTMENT PLAN. (a) Each insurer's board of directors, or, if the insurer does not have a board of directors, the corresponding authority designated by the insurer's charter, bylaws, or plan of operation, shall adopt a written investment plan consistent with the requirements of:
(1) this chapter;
(2) Sections 822.204 , 822.209 , 861.258 , and 862.002 ; and
(3) other statutes governing investments by the insurer.
(b) The investment plan must:
(1) specify the diversification of the insurer's investments designed to reduce the risk of large losses, by:
(A) broad categories, such as bonds and real property loans;
(B) kinds, such as government obligations, obligations of business entities, mortgage-backed securities, and real property loans on office, retail, industrial, or residential properties;
(C) quality;
(D) maturity;
(E) type of industry; and
(F) geographical areas, as to both domestic and foreign investments;
(2) balance safety of principal with yield and growth;
(3) seek a reasonable relationship of assets and liabilities as to term and nature; and
(4) be appropriate considering the capital and surplus and the business conducted by the insurer.
(c) At least annually, the board of directors or corresponding authority shall review the adequacy of the investment plan and the implementation of the plan.
(d) An insurer shall maintain the insurer's investment plan in the insurer's principal office and provide the plan to the commissioner or the commissioner's designee on request. The commissioner or the commissioner's designee shall maintain the plan as a privileged and confidential document. The plan is not subject to public disclosure.

Legislative History

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