Tex.
Ins. Code Section 941.204
Authorized Investments
(a)
The minimum guaranty fund and surplus required of a Lloyd’s plan under Sections 822.054 (Capital Stock and Surplus Requirements), 822.202 (Full Coverage Automobile Insurance; Determination of Amounts), 822.210 (Commissioner May Require Larger Capital and Surplus Amounts), 822.211 (Action of Commissioner When Capital or Surplus Requirements Not Satisfied), and 941.201 (Required Net Assets) must be:(1)
in cash; or(2)
invested as provided by:(A)
Section 822.204 (Form of Capital and Surplus); or(B)
any other law governing the investment of the capital stock and minimum surplus of a capital stock insurance company engaged in the same kind of business.(b)
Funds of a Lloyd’s plan other than the minimum guaranty fund and surplus described by Subsection (a) must, if invested, be invested as provided by:(1)
the provisions of Subchapter B, Chapter 424 (Investments for Certain Insurers), other than Sections 424.052 (Additional General Investment Authority), 424.072 (Authorized Investments: Bonds Issued, Assumed, or Guaranteed in International Market), and 424.073 (Authorized Investments: Insurer Engaged in Business in Foreign Country); or(2)
any other law governing the investment of the funds of a capital stock insurance company engaged in the same kind of business.(c)
A Lloyd’s plan may purchase, hold, or convey real property in accordance with Section 862.002 (Prohibitions Relating to Holding Real Property; Exceptions).(d)
A Lloyd’s plan organized before August 10, 1943, and engaging in business under a certificate of authority issued by the former Board of Insurance Commissioners is not required to comply with this section except as to securities acquired on or after August 10, 1943, regardless of whether those securities were substituted for securities held before that date or were acquired from additional, successor, or substituted underwriters.
Source:
Section 941.204 — Authorized Investments, https://statutes.capitol.texas.gov/Docs/IN/htm/IN.941.htm#941.204 (accessed Jun. 5, 2024).
