Tex. Insurance Code § 823.253
This is the official text of Tex. Insurance Code § 823.253, 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.
§ 823.253. GENERAL STANDARD FOR INVESTMENT IN AFFILIATE.
Official statutory text
(a) A domestic insurer may invest in the securities of one or more of the insurer's affiliates organized for any lawful purpose if:
(1) the amounts invested under this subsection in the aggregate do not exceed the lesser of:
(A) 10 percent of the insurer's assets; or
(B) 50 percent of the insurer's policyholders' surplus; and
(2) after investment under this subsection, the insurer's policyholders' surplus is reasonable in relation to the insurer's outstanding liabilities and adequate to the insurer's financial needs.
(b) For purposes of computing the amount of the investments under this section:
(1) investments in domestic or foreign insurance subsidiaries are excluded; and
(2) the following amounts are included:
(A) the total net amount spent and the amount of obligations assumed to acquire or form a subsidiary, including all organizational expenses and contributions to capital and surplus of the subsidiary regardless of whether represented by the purchase of capital stock or issuance of other securities; and
(B) all amounts spent to acquire additional securities and all contributions to the capital or surplus of a subsidiary made after the acquisition or formation of the subsidiary.
(1) the amounts invested under this subsection in the aggregate do not exceed the lesser of:
(A) 10 percent of the insurer's assets; or
(B) 50 percent of the insurer's policyholders' surplus; and
(2) after investment under this subsection, the insurer's policyholders' surplus is reasonable in relation to the insurer's outstanding liabilities and adequate to the insurer's financial needs.
(b) For purposes of computing the amount of the investments under this section:
(1) investments in domestic or foreign insurance subsidiaries are excluded; and
(2) the following amounts are included:
(A) the total net amount spent and the amount of obligations assumed to acquire or form a subsidiary, including all organizational expenses and contributions to capital and surplus of the subsidiary regardless of whether represented by the purchase of capital stock or issuance of other securities; and
(B) all amounts spent to acquire additional securities and all contributions to the capital or surplus of a subsidiary made after the acquisition or formation of the subsidiary.
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.