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