Texas § IN.425.116 - AUTHORIZED INVESTMENTS
Full text of Texas The Texas Constitution § IN.425.116 — AUTHORIZED INVESTMENTS, with citation guidance and answers to common questions.
§ IN.425.116. AUTHORIZED INVESTMENTS
AUTHORIZED INVESTMENTS: PREFERRED STOCK. (a) Subject to this section, an insurance company may invest in preferred stock of a business entity, as defined by Section 425.110 . (b) An insurance company may invest in preferred stock only if: (1) the stock is rated by the securities valuation office; and (2) the sum of the company's aggregate investment in preferred stock rated 3, 4, 5, or 6 and the company's investments under Section 425.110 (d) does not exceed the limitations specified by Section 425.110 (d). (c) An insurance company's investments in the preferred stock of a single business entity may not exceed 20 percent of the company's capital and surplus. (d) The aggregate amount of an insurance company's investments in preferred stock as to which there is not a sinking fund for the redemption and retirement of the stock that meets the standards established by the National Association of Insurance Commissioners may not exceed 10 percent of the company's assets. (e) The aggregate amount of an insurance company's investments under this section may not exceed 40 percent of the company's assets. Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017 ), Sec. 1, eff. April 1, 2007.
Frequently Asked Questions About Texas § IN.425.116
What does The Texas Constitution § IN.425.116 cover?
Section IN.425.116 ("AUTHORIZED INVESTMENTS") is part of the The Texas Constitution, the codified statutory law of Texas. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Texas § IN.425.116?
A common citation format is "The Texas Constitution § IN.425.116" (Texas). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Texas law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Texas official source linked on this page or consult a licensed Texas attorney.
How does Texas § IN.425.116 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Texas can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Texas.