Tex. Insurance Code § 822.204
This is the official text of Tex. Insurance Code § 822.204, part of Texas’s Insurance Code — regulates insurance companies and the policies they sell.
Not legal advice. This page reproduces the official text of a government statute for reference only. Laws change, and how a statute applies depends on your specific facts. For advice about your situation, consult a licensed attorney in your state.
§ 822.204. FORM OF CAPITAL AND SURPLUS.
Official statutory text
(a) After incorporation and the issuance of a certificate of authority to an insurance company, the minimum capital stock and surplus of the company may consist only of:
(1) United States currency;
(2) bonds of this state;
(3) bonds or other evidences of indebtedness of the United States the principal and interest of which are guaranteed by the United States;
(4) bonds or other interest-bearing evidences of indebtedness of a county or municipality of this state; and
(5) notes secured by first mortgages:
(A) on otherwise unencumbered real property in this state the title to which is valid; and
(B) the payment of which is insured wholly or partly by the United States.
(b) Not more than 50 percent of the minimum capital stock and minimum surplus of an insurance company may be invested in an investment described by Subsection (a)(5).
(1) United States currency;
(2) bonds of this state;
(3) bonds or other evidences of indebtedness of the United States the principal and interest of which are guaranteed by the United States;
(4) bonds or other interest-bearing evidences of indebtedness of a county or municipality of this state; and
(5) notes secured by first mortgages:
(A) on otherwise unencumbered real property in this state the title to which is valid; and
(B) the payment of which is insured wholly or partly by the United States.
(b) Not more than 50 percent of the minimum capital stock and minimum surplus of an insurance company may be invested in an investment described by Subsection (a)(5).
Status: in_force · Read it on the official government site
Need a lawyer in Texas?
Find a Texas lawyer
About this page: Statute text is reproduced from official government publishers via the
Open US Law dataset
(Vaquill AI, snapshot v2026.08, CC BY 4.0). Primary legislative text like this is public domain under the government-edicts doctrine
(Georgia v. Public.Resource.Org, 2020). We link every section back to its official source so you can verify it independently.