Bill Text: TX SB841 | 2013-2014 | 83rd Legislature | Comm Sub

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Relating to certain authorized investments under the Insurance Code.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Passed) 2013-06-14 - Effective on 9/1/13 [SB841 Detail]

Download: Texas-2013-SB841-Comm_Sub.html

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83R24319 MEW-F
By: Hancock S.B. No. 841
(Smithee)
Substitute the following for S.B. No. 841: No.

A BILL TO BE ENTITLED
AN ACT
relating to certain authorized investments under the Insurance
Code.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 424.064(d), Insurance Code, is amended
to read as follows:
(d) Except as provided by Section 862.002, an insurer may
not own, develop, or hold an equity interest in any residential
property or subdivision, single or multiunit family dwelling
property, or undeveloped real property to subdivide for or develop
residential, single or multiunit family dwellings. This subsection
does not apply to an insurer with admitted assets of $10 billion or
more.
SECTION 2. Sections 424.068(a) and (b), Insurance Code, are
amended to read as follows:
(a) In addition to the investments in Canada authorized by
Sections 424.051, 424.058-424.071, and 424.074 and subject to this
section, an insurer may invest the insurer's funds in excess of
minimum capital and surplus in [an investment in] a foreign
commonwealth, territory, or possession of the United States or[,] a
foreign country other than Canada, or invest in debt obligations
and investments within a foreign commonwealth, territory, or
possession of the United States or within a foreign country other
than Canada [a foreign security originating in one of those
commonwealths, territories, possessions, or countries,] if:
(1) the investment is similar to investments the
insurer is authorized by Sections 424.051, 424.058-424.071, and
424.074 to make within the United States or Canada; and
(2) the [if a] debt obligation or [, the] investment is
rated one or two by the securities valuation office.
(b) The aggregate amount of an insurer's investments in a
single foreign jurisdiction under Sections 424.051,
424.058-424.071, and 424.074 or of an insurer's debt obligations or
investments within [in] a single foreign jurisdiction may not
exceed:
(1) as to a foreign jurisdiction that is given a
sovereign debt rating of one by the securities valuation office, 10
percent of the insurer's admitted assets; [or]
(2) as to a debt obligation or investment within a
foreign jurisdiction that is rated one or two by the securities
valuation office, 10 percent of the insurer's admitted assets; or
(3) as to any [other] foreign investment other than an
investment described by Subdivision (1) or (2) [jurisdiction], five
percent of the insurer's admitted assets.
SECTION 3. Section 425.119(f), Insurance Code, is amended
to read as follows:
(f) Except as provided by Subsection (g), an insurance
company may not own, develop, or hold an equity interest in any
residential property or subdivision, single or multiunit family
dwelling property, or undeveloped real property to subdivide for or
develop residential or single or multiunit family dwellings. This
subsection does not apply to an insurer with admitted assets of $10
billion or more, as determined from the insurer's annual statements
that are made as of the December 31 that precedes the date of the
determination and are filed with the department as required by law.
SECTION 4. This Act takes effect September 1, 2013.