Tex. Insurance Code § 424.053

LIMITATION AS TO SINGLE ISSUER OR BORROWER

Texas · Texas Insurance Code · Status: effective

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Citation: Tex. Insurance Code § 424.053, LIMITATION AS TO SINGLE ISSUER OR BORROWER, Texas, version 1 as recorded 2026-07-09, yourstate.us, https://yourstate.us/provision/677440
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(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.