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Texas Insurance Code - INS § 841.412. Minimum Authorized Investment Requirement After Credit for Reinsurance;  Letters of Credit;  Guaranties

Current as of January 01, 2024 | Updated by Findlaw Staff

(a) A limited purpose subsidiary life insurance company shall hold investments authorized under Subchapters C and D, Chapter 425,  1 exclusive of investments in affiliates, in an amount that at least equals the sum of:

(1) the minimum capital and surplus requirements of Section 841.410;

(2) the risk-based capital requirements adopted by the commissioner;  and

(3) reserves calculated using generally accepted accounting principles.

(b) Subject to compliance with Subsection (a) and notwithstanding Chapter 425, a limited purpose subsidiary life insurance company may reduce the amount of the company's excess reserves on account of:

(1) reinsurance that complies with Chapter 493;

(2) a letter of credit that complies with Section 493.104(b)(2)(C);  or

(3) guaranties from a holding company or an affiliated company as provided by Section 841.417.

(c) Notwithstanding Subsection (b), a limited purpose subsidiary life insurance company may hold guaranties from a holding company or an affiliated company as provided by Section 841.417 as an admitted asset with an offsetting increase in special surplus funds to support excess reserves only.

1  V.T.C.A., Insurance Code § 425.101 et seq. and 425.201 et seq.
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Cite this article: FindLaw.com - Texas Insurance Code - INS § 841.412. Minimum Authorized Investment Requirement After Credit for Reinsurance;  Letters of Credit;  Guaranties - last updated January 01, 2024 | https://codes.findlaw.com/tx/insurance-code/ins-sect-841-412/

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