{"data":{"id":"us-tx/tex.-insurance-code-425.1231","jurisdiction":"us-tx","citation":"Tex. Insurance Code § 425.1231","heading":"AUTHORIZED INVESTMENTS: BOND EXCHANGE-TRADED FUNDS.","body":"(a) An insurance company 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 insurance company's investment in the exchange-traded fund does not exceed 15 percent of the insurance company's capital and surplus.\n(b) This section does not authorize an insurance company 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) A bond exchange-traded fund described by Subsection (a) shall be considered a business entity for purposes of Section 425.110.\n(d) An insurance company 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 insurance company.\nAdded by Acts 2019, 86th Leg., R.S., Ch. 1132 (H.B. 2694), Sec. 2, eff. September 1, 2019.","path":["INSURANCE CODE","TITLE 4. REGULATION OF SOLVENCY","SUBTITLE B. RESERVES AND INVESTMENTS","CHAPTER 425. RESERVES AND INVESTMENTS FOR LIFE INSURANCE COMPANIES AND RELATED ENTITIES","SUBCHAPTER C. AUTHORIZED INVESTMENTS AND TRANSACTIONS FOR CAPITAL STOCK LIFE, HEALTH, AND ACCIDENT INSURERS"],"source_url":"https://statutes.capitol.texas.gov/Docs/IN/htm/IN.425.htm#425.1231","current_through":"89th 2nd Called Legislative Session, 2025","vintage":"","retrieved_at":"2026-08-27T01:47:21Z","sha256":"586c0e827cdaae45d3de862d798f46a4ab7fa727b84c9dc3dacf04ebe7d49ab3","source_id":"us-tx","stale":false,"prev":"us-tx/tex.-insurance-code-425.123","next":"us-tx/tex.-insurance-code-425.124"},"notice":"GroundRules: Original legal text. Not legal advice."}