PROHIBITIONS RELATING TO HOLDING REAL PROPERTY; EXCEPTIONS

(a) A fire, marine, or inland marine insurance company may not purchase, hold, or convey real property, except as provided by Subsections (b) and (c). (b) The company may erect and maintain buildings ample and adequate for the transaction of the company's business. (c) Subsection (a) does not apply to: (1) real property mortgaged to the company in good faith as security for a loan previously contracted or for money due; (2) real property conveyed to the company in satisfaction of a debt previously contracted in the legitimate business of the company or for money due; (3) real property purchased under a judgment, decree, or mortgage obtained or made for a debt under Subdivision (2); or (4) a mineral or royalty interest reserved on the sale of real property acquired under Subdivision (1), (2), or (3) before January 1, 1942. (d) A fire, marine, or inland marine insurance company may not invest more than 33-1/3 percent of the company's admitted assets in real property. A fire, marine, or inland marine insurance company may not invest any of its capital or minimum surplus in real property, other than real property described by Subsection (c). (e) Section 861.258 applies to real property acquired under Subsection (c)(1), (2), or (3). (f) The commissioner shall appoint at least two competent and disinterested residents of this state to appraise real property described by Subsection (b) when the property is acquired or when the company applies for amendment to its charter. The company shall pay to the commissioner the reasonable cost of the appraisal.