Sec. 423.104.  PROOF OF OWNERSHIP OF SECURITIES.  (a)  A domestic insurer may demonstrate ownership of a security through a definitive certificate or in accordance with rules adopted under this section.
(b)  The commissioner shall adopt rules under which a domestic insurer may demonstrate ownership of an uncertificated security, as defined by Section 8.102(a), Business & Commerce Code, consistent with common practices of securities exchanges and markets.  The rules must establish:
(1)  standards for the types of uncertificated securities the insurer may hold;
(2)  the manner in which the insurer may demonstrate ownership of the security; and
(3)  adequate financial safeguards relating to the ownership of uncertificated securities.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.