Bill Text: TX SB841 | 2013-2014 | 83rd Legislature | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
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-Introduced.html
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-Introduced.html
83R3715 JRR-F | ||
By: Hancock | S.B. No. 841 |
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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(b), Insurance Code, is amended | ||
to read as follows: | ||
(b) An insurer with admitted assets of more than $500 | ||
million may individually or in conjunction with other investors | ||
acquire, own, hold, develop, and improve real property that is | ||
essentially residential or commercial in character, even though the | ||
property is subject to an existing mortgage or the insurer | ||
subsequently mortgages the property. An investment in [ |
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real property is authorized [ |
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enhanced in value by: | ||
(1) the construction of durable, permanent-type | ||
buildings and other improvements that cost an amount at least equal | ||
to the cost of the real property, excluding buildings and | ||
improvements at the time the property is acquired; or | ||
(2) the construction, commenced before the second | ||
anniversary of the date the real property is acquired, of buildings | ||
and improvements described by Subdivision (1). | ||
SECTION 2. Section 424.068, Insurance Code, is amended to | ||
read as follows: | ||
Sec. 424.068. AUTHORIZED INVESTMENTS: INVESTMENT IN | ||
FOREIGN JURISDICTION. (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 make investments within | ||
another [ |
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commonwealth, territory, or possession of the United States[ |
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(b) An investment made under this section must be | ||
substantially the same type as an investment authorized to be made | ||
within the United States or Canada by this subchapter. [ |
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(c) The sum of the amount of investments made under this | ||
section and the amount of similar investments made within the | ||
United States and Canada may not exceed any limitation imposed by | ||
Sections 424.051, 424.058-424.071, and 424.074 [ |
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(d) The aggregate [ |
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insurer's investments [ |
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exceed the sum of: | ||
(1) the amount of the insurer's reserves attributable | ||
to insurance business in force in foreign countries, if any, and any | ||
additional investments required by a foreign country as a condition | ||
of engaging in business in that country; and | ||
(2) 20 percent of the insurer's assets [ |
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(e) An insurer may not invest more than 10 percent of the | ||
insurer's assets in investments denominated in foreign currency | ||
that are not hedged under Subchapter E. | ||
SECTION 3. Section 425.119(f), Insurance Code, is amended | ||
to read as follows: | ||
(f) In addition to an investment authorized by [ |
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or in conjunction with other investors acquire, [ |
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develop, and improve real property that is essentially residential | ||
or commercial in character, even though the property is subject to | ||
an existing mortgage or the insurance company subsequently | ||
mortgages the property [ |
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SECTION 4. Section 424.064(d), Insurance Code, is repealed. | ||
SECTION 5. This Act takes effect September 1, 2013. |