Sec. 823.255. AGREEMENT OF AFFILIATE TO LIMIT CERTAIN INVESTMENTS. (a) A domestic insurer may invest any amount in the securities of one or more affiliates organized for any lawful purpose if each affiliate agrees to limit its investments in any particular asset so that the investments will not cause the amount of the total investment of the insurer to exceed the amount the insurer could have directly invested in that asset.
(b) To compute the amount of the total investment of an insurer in an asset for purposes of Subsection (a), the following amounts are included:
(1) any direct investment by the insurer in that asset; and
(2) the insurer's proportionate share of investment in that asset by any affiliate of the insurer.
(c) To compute the insurer's proportionate share of investment under Subsection (b)(2), the amount of the affiliate's investment in the asset is multiplied by the percentage of the insurer's ownership of that affiliate.
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