Sec. 828.055. RESTRICTIONS ON REINSURED COMPANY. Following the earlier of the date of the contract to purchase the shares or the date of the commissioner's approval of the purchase, offer to purchase, tender offer, request to purchase, or invitation to purchase the shares, the company the shares of which are being purchased may not purchase or contract to purchase any of its own shares as treasury shares, issue or contract to issue any of its authorized but unissued shares, or make any investments in or loans to the purchasing company or an affiliate of the purchasing company unless the investment or loan is otherwise authorized and approved in advance by the commissioner under Chapter 823.
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 828 - Purchase of Stock for Total Assumption Reinsurance
Subchapter B. Exception to Investment Limitation
Section 828.051. Exception to Limitation on Purchasing Shares of Other Company
Section 828.052. Resolution of Intention to Reinsure
Section 828.053. Minimum Stock Acquisition
Section 828.054. Approval Required
Section 828.055. Restrictions on Reinsured Company
Section 828.057. Prohibition on Use of Purchasing Company's Capital, Surplus, or Reserves