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Tex. Insurance Code § 823.255

AGREEMENT OF AFFILIATE TO LIMIT CERTAIN INVESTMENTS

Texas · Texas Insurance Code · Status: effective

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Tex. Insurance Code § 823.255, AGREEMENT OF AFFILIATE TO LIMIT CERTAIN INVESTMENTS, Texas, version 1 as recorded 2026-07-09, yourstate.us, https://yourstate.us/provision/679077
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(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.