1. (a) This section applies to each investment of an affected life insurance company, including an investment in real property, that:

   1. (1) was authorized as a proper asset, as of the date on which the investment was made and under the laws of the state in which the company was organized, for investment of funds of a life insurance company; and
   2. (2) is taken over by the new or surviving company under the terms of the merger or consolidation.

2. (b) On the effective date of a merger or consolidation of two or more life insurance companies under this subchapter, an investment of the affected companies described by Subsection (a) is a proper asset under the laws of this state of the new or surviving company if the investment is:

   1. (1) approved by the commissioner; and
   2. (2) taken over on terms satisfactory to the commissioner.

3. (c) A new or surviving company that acquires, under the terms of the merger or consolidation, real property that exceeds the amount of real property permitted by the applicable sections of this code relating to owning or holding real property shall sell or dispose of the excess real property:

   1. (1) within the period specified by those sections; or

   2. (2) within a longer period if the company obtains a certificate from the commissioner:

      1. (A) stating that the interests of the company will materially suffer by the forced sale or other disposition of the real property; and
      2. (B) specifying the longer period for the sale or other disposition of the real property.
4. (d) This section does not preclude the designation and use of the excess real property as branch offices of the company in accordance with this code.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.