Sec. 823.254. STANDARD FOR INVESTMENT IN AFFILIATE BY INSURER WITH LOW TOTAL LIABILITIES. If a domestic insurer's total liabilities, as computed for National Association of Insurance Commissioners annual statement purposes, are less than 10 percent of the insurer's assets, the insurer may invest any amount in the securities of one or more affiliates organized for any lawful purpose if after the investment, treating the investment as if it were a nonadmitted asset, the insurer's policyholders' surplus is reasonable in relation to the insurer's outstanding liabilities and adequate to its financial needs.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
Structure Texas Statutes
Title 6 - Organization of Insurers and Related Entities
Subtitle B - Organization of Regulated Entities
Chapter 823 - Insurance Holding Company Systems
Subchapter F. Insurer's Loans to or Investment in Affiliate
Section 823.252. General Authority Relating to Affiliates
Section 823.253. General Standard for Investment in Affiliate
Section 823.254. Standard for Investment in Affiliate by Insurer With Low Total Liabilities
Section 823.255. Agreement of Affiliate to Limit Certain Investments
Section 823.256. Commissioner's Approval of Investment
Section 823.257. Determination Required Before Investment
Section 823.258. Disposition of Investment in Subsidiary After Cessation of Control
Section 823.259. Exemption From Certain Limitations; Investment Authority Cumulative of Other Law