Texas § IN.424.111 - POOLING AGREEMENT PROVISIONS

§ IN.424.111. POOLING AGREEMENT PROVISIONS

POOLING AGREEMENT PROVISIONS. The pooling agreement for an investment pool must provide that: (1) 100 percent of the ownership interests in the pool must at all times be held by: (A) an insurer and the insurer's affiliated insurers; (B) for a pool investing solely in investments authorized under Section 424.104 , the insurer and the insurer's subsidiaries and affiliates or any pension or profit-sharing plan of the insurer and the insurer's subsidiaries and affiliates; or (C) for a United States branch of an alien insurer, subsidiaries or affiliates of the insurer's United States manager; (2) the pool's underlying assets are held solely for the benefit of each participant and may not be commingled with the general assets of the pool manager or any other person; (3) each participant owns an undivided interest in the pool's underlying assets in proportion to the aggregate amount of the participant's interest in the pool; and (4) a pool participant or, if a pool participant is insolvent, bankrupt, or in receivership, the participant's trustee, receiver, conservator, or other successor-in-interest may withdraw all or any portion of the participant's investment from the pool under the terms of the pooling agreement. Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017 ), Sec. 1, eff. April 1, 2007.