Texas § IN.425.157 - AGGREGATE DIVERSIFICATION REQUIREMENTS

§ IN.425.157. AGGREGATE DIVERSIFICATION REQUIREMENTS

AGGREGATE DIVERSIFICATION REQUIREMENTS. (a) This section takes precedence over Sections 425.109-425.120, 425.122-425.153, and 425.155 (a), (b), and (c). (b) An insurance company's investments in all or any types of securities, loans, obligations, or evidences of indebtedness of a single issuer or borrower, including the issuer's or borrower's majority-owned subsidiaries or parent and the majority-owned subsidiaries of the issuer's or borrower's parent, may not, in the aggregate, exceed five percent of the company's assets. This subsection does not apply to: (1) authorized investments that: (A) are direct obligations of, or are guaranteed by the full faith and credit of, the United States, this state, or a political subdivision of this state; or (B) are insured by an agency of the United States or this state; or (2) an investment provided for by Section 425.112 or 425.113 . (c) Except as otherwise provided by this subsection, an insurance company's aggregate investment in real property under Sections 425.119 , 425.120 , 425.152 , and 425.153 may not exceed 33-1/3 percent of the company's assets. If a company acquires real property under Section 425.119 (g) and that acquisition causes the company's aggregate real estate investment to exceed the limitation imposed by this subsection, the company shall, on or before the 10th anniversary of the date the real property is acquired, dispose of a sufficient amount of real property to comply with the applicable limitation. A company that does not dispose of excess real property as required by this subsection may not admit as an asset the value of the real property that exceeds the applicable limitation. (d) If an insurance company's real property acquisitions exceed the limitation imposed by Subsection (c), the company may not acquire additional real property under Section 425.119 (b) or (c) or 425.120 , 425.152 , or 425.153 until the company disposes of the excess real property as specified by Subsection (c). Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017 ), Sec. 1, eff. April 1, 2007.