Tex. Ins. Code Section 424.068
Authorized Investments: Investment in Foreign Jurisdiction


(a)

In addition to the investments in Canada authorized by Sections 424.051 (General Investment Authority Specified by Law), 424.058-424.071, and 424.074 (Other Specifically Authorized Investments) and subject to this section, an insurer may invest the insurer’s funds in excess of minimum capital and surplus in a foreign commonwealth, territory, or possession of the United States or a foreign country other than Canada, or invest in debt obligations and investments within a foreign commonwealth, territory, or possession of the United States or within a foreign country other than Canada if:

(1)

the investment is similar to investments the insurer is authorized by Sections 424.051 (General Investment Authority Specified by Law), 424.058-424.071, and 424.074 (Other Specifically Authorized Investments) to make within the United States or Canada; and

(2)

the debt obligation or investment is rated one or two by the securities valuation office.

(b)

The aggregate amount of an insurer’s investments in a single foreign jurisdiction under Sections 424.051 (General Investment Authority Specified by Law), 424.058-424.071, and 424.074 (Other Specifically Authorized Investments) or of an insurer’s debt obligations or investments within a single foreign jurisdiction may not exceed:

(1)

as to a foreign jurisdiction that is given a sovereign debt rating of one by the securities valuation office, 10 percent of the insurer’s admitted assets;

(2)

as to a debt obligation or investment within a foreign jurisdiction that is rated one or two by the securities valuation office, 10 percent of the insurer’s admitted assets; or

(3)

as to any foreign investment other than an investment described by Subdivision (1) or (2), five percent of the insurer’s admitted assets.

(c)

The amount of investments made under this section may not exceed the sum of:

(1)

the amounts authorized by Section 424.073 (Authorized Investments: Insurer Engaged in Business in Foreign Country); and

(2)

20 percent of the insurer’s assets.

(d)

The combined total of the amount of investments made under this section, the amount of similar investments made within the United States and Canada, and any amounts of investments authorized by Section 424.073 (Authorized Investments: Insurer Engaged in Business in Foreign Country) may not exceed any limitation prescribed by Sections 424.051 (General Investment Authority Specified by Law), 424.058-424.071, and 424.074 (Other Specifically Authorized Investments).
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 1175 (S.B. 841), Sec. 2, eff. September 1, 2013.

Source: Section 424.068 — Authorized Investments: Investment in Foreign Jurisdiction, https://statutes.­capitol.­texas.­gov/Docs/IN/htm/IN.­424.­htm#424.­068 (accessed Jun. 5, 2024).

424.001
Definitions
424.002
Inapplicability of Certain Law
424.051
General Investment Authority Specified by Law
424.052
Additional General Investment Authority
424.053
Limitation as to Single Issuer or Borrower
424.054
Applicability of Percentage Authorizations and Limitations
424.055
Waiver by Commissioner of Quantitative Limitations
424.056
Written Investment Plan
424.057
Investment Records
424.058
Authorized Investments: Form of Minimum Capital and Surplus
424.059
Authorized Investments: Government Obligations
424.060
Authorized Investments: Stock of National or State Bank
424.061
Authorized Investments: Deposits in Certain Financial Institutions
424.062
Authorized Investments: Certain Obligations of Partnership or Corporation
424.063
Authorized Investments: Mutual Funds
424.064
Authorized Investments: Real Property
424.065
Acting as Real Estate Broker or Salesperson Prohibited
424.066
Authorized Investments: Obligations Secured by Real Property Loans
424.067
Authorized Investments: Transportation Equipment
424.068
Authorized Investments: Investment in Foreign Jurisdiction
424.069
Authorized Investments: Certain Loans
424.070
Authorized Investments: Obligations of Local Governmental Entities
424.071
Authorized Investments: the University of Texas
424.072
Authorized Investments: Bonds Issued, Assumed, or Guaranteed in International Market
424.073
Authorized Investments: Insurer Engaged in Business in Foreign Country
424.074
Other Specifically Authorized Investments
424.075
Authorized Investments: Bond Exchange-traded Funds
424.101
Definitions
424.102
Authority to Invest in Pool
424.103
Investment Pool Requirements and Qualifications
424.104
Authorized Investments for Short-term Investment Pool
424.105
Short-term Investment Pool: Certain Short-term Obligations
424.106
Short-term Investment Pool: Certain Money Market Funds
424.107
Authorized Investments for Authorized Investment Pool
424.108
General Insurer Investment Limitations
424.109
Designation of Pool Manager
424.110
Pool Manager to Maintain Assets
424.111
Pooling Agreement Provisions
424.112
Withdrawals and Distributions
424.113
Investment Pool Records
424.114
Inspection of Records
424.115
Reports of Transactions Between Pool and Participant
424.151
Definitions
424.152
Transactions Authorized
424.153
Period of Transaction
424.154
Cash Requirements
424.155
Collateral Requirements
424.156
Percentage Limitations
424.157
Rules
424.201
Definitions
424.202
Risk Control Transactions Authorized
424.203
Notice of Intent to Engage in Risk Control Transactions Required
424.204
Trading Requirements for Derivative Instruments
424.205
Derivative Use Plan
424.206
Internal Control Procedures
424.207
Ability to Demonstrate Hedging Characteristics and Effectiveness
424.208
Offsetting Transactions
424.209
Inclusion of Counterparty Exposure Amounts
424.210
Oversight by Commissioner
424.211
Authority to Enter into Hedging Transaction
424.212
Authority to Enter into Income Generation Transaction
424.213
Limitation on Sale of Call Option on Assets
424.214
Limitation on Sale of Put Option on Assets
424.215
Limitation on Sale of Call Option on Derivative Instrument
424.216
Limitation on Sale of Cap or Floor
424.217
Authority to Enter Replication Transaction
424.218
Rules

Accessed:
Jun. 5, 2024

§ 424.068’s source at texas​.gov