(a) A limited purpose subsidiary life insurance company shall hold investments authorized under Subchapters C and D, Chapter 425, exclusive of investments in affiliates, in an amount that at least equals the sum of:
(1) the minimum capital and surplus requirements of Section 841.410;
(2) the risk-based capital requirements adopted by the commissioner; and
(3) reserves calculated using generally accepted accounting principles.
(b) Subject to compliance with Subsection (a) and notwithstanding Chapter 425, a limited purpose subsidiary life insurance company may reduce the amount of the company's excess reserves on account of:
(1) reinsurance that complies with Chapter 493;
(2) a letter of credit that complies with Section 493.104(b)(2)(C); or
(3) guaranties from a holding company or an affiliated company as provided by Section 841.417.
(c) Notwithstanding Subsection (b), a limited purpose subsidiary life insurance company may hold guaranties from a holding company or an affiliated company as provided by Section 841.417 as an admitted asset with an offsetting increase in special surplus funds to support excess reserves only.