{"data":{"id":"us-tx/tex.-insurance-code-424.075","jurisdiction":"us-tx","citation":"Tex. Insurance Code § 424.075","heading":"AUTHORIZED INVESTMENTS: BOND EXCHANGE-TRADED FUNDS.","body":"(a) An insurer may invest the insurer's funds in excess of minimum capital and surplus in shares of a bond exchange-traded fund registered under the Investment Company Act of 1940 (15 U.S.C. Section 80a-1 et seq.), as amended, if:\n(1) the exchange-traded fund is solvent and reported at least $100 million of net assets in the exchange-traded fund's latest annual or more recent certified audited financial statement;\n(2) the securities valuation office has designated the exchange-traded fund as meeting the criteria to be placed on the list promulgated by the securities valuation office of exchange-traded funds eligible for reporting as a long-term bond in the Purposes and Procedures Manual of the securities valuation office or a successor publication; and\n(3) the amount of the insurer's investment in the exchange-traded fund does not exceed 15 percent of the insurer's capital and surplus.\n(b) This section does not authorize an insurer to invest in a bond exchange-traded fund that has:\n(1) embedded structural features designed to deliver performance that does not track the full unlevered and positive return of the underlying index or exposure, including a leveraged or inverse exchange-traded fund; or\n(2) an expense ratio in excess of 100 basis points.\n(c) An insurer may deposit with the department shares of a bond exchange-traded fund described by Subsection (a) as a statutory deposit if state law requires a statutory deposit from the insurer.\nAdded by Acts 2019, 86th Leg., R.S., Ch. 1132 (H.B. 2694), Sec. 1, eff. September 1, 2019.","path":["INSURANCE CODE","TITLE 4. REGULATION OF SOLVENCY","SUBTITLE B. RESERVES AND INVESTMENTS","CHAPTER 424. INVESTMENTS FOR CERTAIN INSURERS","SUBCHAPTER B. INVESTMENT OF FUNDS IN EXCESS OF MINIMUM CAPITAL AND SURPLUS"],"source_url":"https://statutes.capitol.texas.gov/Docs/IN/htm/IN.424.htm#424.075","current_through":"89th 2nd Called Legislative Session, 2025","vintage":"","retrieved_at":"2026-08-27T01:47:21Z","sha256":"71b144cf1d1e594cae9c796197cb50eee231c778cf59ed649ec1a451ea3bb60c","source_id":"us-tx","stale":false,"prev":"us-tx/tex.-insurance-code-424.074","next":"us-tx/tex.-insurance-code-424.101"},"notice":"GroundRules: Original legal text. Not legal advice."}