reglab/housing_qa huggingface dataset:
TX Ins Code § 425.055 (2021)
2021 Texas Statutes|Insurance Code|Title 4 - Regulation of Solvency|Subtitle B - Reserves and Investments|Chapter 425 - Reserves and Investments for Life Insurance Companies and Related Entities|Subchapter B. Standard Valuation Law|Section 425.055. Supporting Memorandum for Actuarial Opinion

Sec. 425.055.  SUPPORTING MEMORANDUM FOR ACTUARIAL OPINION.  (a)  A memorandum shall be prepared to support each actuarial opinion required by Section 425.054 or 425.0545.  The form and substance of each supporting memorandum must comply with the commissioner's rules for memorandums subject to Section 425.054, or the valuation manual for memorandums subject to Section 425.0545.(b)  The commissioner may engage an actuary or other financial specialist as defined by commissioner rule if:(1)  a life insurance company does not provide a supporting memorandum at the request of the commissioner in the time specified by rule; or(2)  the company provides a supporting memorandum, but the commissioner determines that the supporting memorandum does not meet the standards prescribed by rule or is otherwise unacceptable to the commissioner.(c)  The actuary or other financial specialist under Subsection (b) shall:(1)  review the actuarial opinion and the basis for the opinion; and(2)  prepare the supporting memorandum.(d)  A life insurance company is responsible for the expense of the actuary or other financial specialist under Subsection (b).|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.Amended by: Acts 2015, 84th Leg., R.S., Ch. 313 (S.B. 1654), Sec. 8, eff. September 1, 2015.|
TX Ins Code § 425.056 (2021)
2021 Texas Statutes|Insurance Code|Title 4 - Regulation of Solvency|Subtitle B - Reserves and Investments|Chapter 425 - Reserves and Investments for Life Insurance Companies and Related Entities|Subchapter B. Standard Valuation Law|Section 425.056. Limitation on Liability for Actuarial Opinion

Sec. 425.056.  LIMITATION ON LIABILITY FOR ACTUARIAL OPINION.  (a)  Except in cases of fraud or wilful misconduct or as provided by Subsection (b), a person who certifies an opinion under Section 425.054 or 425.0545 is not liable for damages to a person, other than the life insurance company covered by the opinion, for an act, error, omission, decision, or other conduct with respect to the person's opinion.(b)  Subsection (a)  does not apply to an administrative penalty imposed under Chapter 84.|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.Amended by: Acts 2015, 84th Leg., R.S., Ch. 313 (S.B. 1654), Sec. 9, eff. September 1, 2015.|
TX Ins Code § 425.057 (2021)
2021 Texas Statutes|Insurance Code|Title 4 - Regulation of Solvency|Subtitle B - Reserves and Investments|Chapter 425 - Reserves and Investments for Life Insurance Companies and Related Entities|Subchapter B. Standard Valuation Law|Section 425.057. Disciplinary Action: Company or Person Certifying Opinion

Sec. 425.057.  DISCIPLINARY ACTION: COMPANY OR PERSON CERTIFYING OPINION.  A company or person that certifies an opinion under Section 425.054 or 425.0545 and that violates Section 425.054, 425.0545, or 425.055 or rules adopted under those sections is subject to disciplinary action under Chapter 82.|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.Amended by: Acts 2015, 84th Leg., R.S., Ch. 313 (S.B. 1654), Sec. 10, eff. September 1, 2015.|
TX Ins Code § 425.060 (2021)
2021 Texas Statutes|Insurance Code|Title 4 - Regulation of Solvency|Subtitle B - Reserves and Investments|Chapter 425 - Reserves and Investments for Life Insurance Companies and Related Entities|Subchapter B. Standard Valuation Law|Section 425.060. Applicability of Calendar Year Statutory Valuation Interest Rates

Sec. 425.060.  APPLICABILITY OF CALENDAR YEAR STATUTORY VALUATION INTEREST RATES.  The calendar year statutory valuation interest rates as defined by Sections 425.061, 425.062, and 425.063 are the interest rates used in determining the minimum standard for the valuation of:(1)  a life insurance policy to which Subchapter B, Chapter 1105, applies;(2)  an individual annuity or pure endowment contract issued on or after January 1, 1982;(3)  an annuity or pure endowment purchased on or after January 1, 1982, under a group annuity or pure endowment contract; or(4)  the net increase, if any, in a calendar year after January 1, 1982, in amounts held under a guaranteed interest contract.|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|
TX Ins Code § 425.061 (2021)
2021 Texas Statutes|Insurance Code|Title 4 - Regulation of Solvency|Subtitle B - Reserves and Investments|Chapter 425 - Reserves and Investments for Life Insurance Companies and Related Entities|Subchapter B. Standard Valuation Law|Section 425.061. Computation of Calendar Year Statutory Valuation Interest Rate: General Rule

Sec. 425.061.  COMPUTATION OF CALENDAR YEAR STATUTORY VALUATION INTEREST RATE:  GENERAL RULE.  (a)  For purposes of Subsection (b):(1)  R1 is the lesser of R or.09;(2)  R2 is the greater of R or.09;(3)  R is the reference interest rate determined under Section 425.063; and(4)  W is the weighting factor determined under Section 425.062.(b)  The calendar year statutory valuation interest rate ("I") is determined as provided by this section, with the results rounded to the nearest one-quarter  of one percent:(1)  for life insurance:I =.03 + W(R1 -.03) + (W/2)(R2 -.09); and(2)  for a single premium immediate annuity or annuity benefits involving life contingencies arising from another annuity with a cash settlement option or from a guaranteed interest contract with a cash settlement option, or for an annuity or guaranteed interest contract without a cash settlement option, or for an annuity or guaranteed interest contract with a cash settlement option that is valued on a change in fund basis:I =.03 + W(R -.03).(c)  For an annuity or guaranteed interest contract with a cash settlement option that is valued on an issue year basis, other than an annuity or contract described by Subsection (b)(2):(1)  the formula prescribed by Subsection (b)(1) applies to an annuity or guaranteed interest contract with a guarantee duration determined under Section 425.062(f) greater than 10 years; and(2)  the formula prescribed by Subsection (b)(2) applies to an annuity or guaranteed interest contract with a guarantee duration determined under Section 425.062(f) of 10 years or less.(d)  Notwithstanding Subsections (b) and (c), if the calendar year statutory valuation interest rate for a life insurance policy issued in a calendar year as determined under Subsection (b) or (c), as applicable, would differ  from the corresponding actual rate for similar policies issued in the preceding calendar year by less than one-half of one percent, the calendar year statutory valuation interest rate for the policy is the corresponding actual rate for the preceding calendar year.  For purposes of this subsection, the calendar year statutory valuation interest rate for a life insurance policy issued in a calendar year is determined for 1980 using the reference interest rate defined for 1979, and is determined for each subsequent calendar year regardless of whether Subchapter B, Chapter 1105, applies to the policy.|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|
TX Ins Code § 425.065 (2021)
2021 Texas Statutes|Insurance Code|Title 4 - Regulation of Solvency|Subtitle B - Reserves and Investments|Chapter 425 - Reserves and Investments for Life Insurance Companies and Related Entities|Subchapter B. Standard Valuation Law|Section 425.065. Commissioners Annuity Reserve Valuation Method for Annuity and Pure Endowment Benefits

Sec. 425.065.  COMMISSIONERS ANNUITY RESERVE VALUATION METHOD FOR ANNUITY AND PURE ENDOWMENT BENEFITS.  (a)  This section applies to an annuity or pure endowment contract other than a group annuity or pure endowment contract purchased under a retirement or deferred compensation plan established or maintained by an employer, including a partnership or sole proprietorship, by an employee organization, or by both, other than a plan providing individual retirement accounts or individual retirement annuities under Section 408, Internal Revenue Code of 1986, and that section's subsequent amendments.(b)  Reserves according to the commissioners annuity reserve method for benefits under an annuity or pure endowment contract, excluding any disability or accidental death benefits in the contract, are the greatest of the respective excesses of the present values on the valuation date of the future guaranteed benefits under the contract at the end of each respective contract year, including guaranteed nonforfeiture benefits, minus the present value on the valuation date of any future valuation considerations derived from future gross considerations that are required by the contract terms and that become payable before the end of the respective contract year.  The future guaranteed benefits must be determined by using the mortality table, if any, and the interest rate or rates specified in the contract for determining guaranteed benefits.  The valuation considerations are the portions of the respective gross considerations applied under the contract terms to determine nonforfeiture values.|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.Amended by: Acts 2015, 84th Leg., R.S., Ch. 313 (S.B. 1654), Sec. 14, eff. September 1, 2015.|
TX Ins Code § 425.066 (2021)
2021 Texas Statutes|Insurance Code|Title 4 - Regulation of Solvency|Subtitle B - Reserves and Investments|Chapter 425 - Reserves and Investments for Life Insurance Companies and Related Entities|Subchapter B. Standard Valuation Law|Section 425.066. Minimum Aggregate Reserves

Sec. 425.066.  MINIMUM AGGREGATE RESERVES.  (a)  An insurance company's aggregate reserves for all life insurance policies, excluding disability or accidental death benefits, issued by the company on or after the date on which Chapter 1105 applies to policies issued by the company, as determined under Section 1105.002(a) or (b), may not be less than the aggregate reserves computed in accordance with the methods prescribed by Sections 425.064, 425.065, 425.068, and 425.069 and the mortality table or tables and interest rate or rates used in computing nonforfeiture benefits for those policies.(b)  The aggregate reserves of an insurance company to which this section applies for all policies, contracts, and benefits may not be less than the aggregate reserves determined to be necessary to issue a favorable opinion under Section 425.054.|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|
TX Ins Code § 425.067 (2021)
2021 Texas Statutes|Insurance Code|Title 4 - Regulation of Solvency|Subtitle B - Reserves and Investments|Chapter 425 - Reserves and Investments for Life Insurance Companies and Related Entities|Subchapter B. Standard Valuation Law|Section 425.067. Optional Reserve Computations

Sec. 425.067.  OPTIONAL RESERVE COMPUTATIONS.  (a)  Reserves for a policy or contract issued by a life insurance company before the date on which Chapter 1105 would apply to the policy or contract, as determined under Section 1105.002(a) or (b), may be computed, at the company's option, according to any standard that produces greater aggregate reserves for all those policies and contracts than the minimum reserves required by the laws applicable to those policies and contracts immediately before that date.(b)  Reserves for any category, as established by the commissioner, of policies, contracts, or benefits issued by a life insurance company on or after the date on which Chapter 1105 applies to policies, contracts, or benefits issued by the company, as determined under Section 1105.002(a) or (b), may be computed, at the company's option, according to any standard that produces greater aggregate reserves for the category than the minimum aggregate reserves computed according to the standard provided by this subchapter, but the interest rate or rates used for those policies and contracts, other than annuity and pure endowment contracts, may not be higher than the corresponding interest rate or rates used in computing any nonforfeiture benefits provided in those policies or contracts.(c)  An insurance company that has adopted a standard of valuation that produces greater minimum aggregate reserves than the aggregate reserves computed according to the standard provided by this subchapter may, with the commissioner's approval, adopt any lower standard of valuation that produces aggregate reserves at least equal to the minimum aggregate reserves computed according to the standard provided by this subchapter.(d)  For purposes of this section, the holding of additional reserves previously determined to be necessary to issue a favorable opinion under Section 425.054 may not be considered to be the adoption of a higher standard of valuation.|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|
TX Ins Code § 425.068 (2021)
2021 Texas Statutes|Insurance Code|Title 4 - Regulation of Solvency|Subtitle B - Reserves and Investments|Chapter 425 - Reserves and Investments for Life Insurance Companies and Related Entities|Subchapter B. Standard Valuation Law|Section 425.068. Reserve Computation: Gross Premium Charged Less Than Valuation Net Premium

Sec. 425.068.  RESERVE COMPUTATION: GROSS PREMIUM CHARGED LESS THAN VALUATION NET PREMIUM.  (a)  If in a contract year the gross premium charged by a life insurance company on a policy or contract is less than the valuation net premium for the policy or contract computed by the method used in computing the reserve on the policy or contract but using the minimum valuation mortality standards and interest rate, the minimum reserve required for the policy or contract is the greater of:(1)  the reserve computed according to the mortality table, interest rate, and method actually used for the policy or contract; or(2)  the reserve computed by the method actually used for the policy or contract but using the minimum valuation mortality standards and interest rate and replacing the valuation net premium with the actual gross premium in each contract year for which the valuation net premium exceeds the actual gross premium.(b)  The minimum valuation mortality standards and interest rate under Subsection (a) are the standards and rate provided by Sections 425.058, 425.061, 425.062, and 425.063.(c)  This subsection applies only to a life insurance policy issued on or after January 1, 1985, for which the gross premium for the first policy year exceeds the gross premium for the second policy year, for which a comparable additional benefit is not provided in the first year for the excess premium, and that provides an endowment benefit, a cash surrender value, or a combination of an endowment benefit and cash surrender value, in an amount greater than the excess premium.  For a policy to which this subsection applies, Subsections (a) and (b) shall be applied as if the method actually used in computing the reserve for the policy were the method described in Section 425.064, ignoring Section 425.064(c).  The minimum reserve at each policy anniversary is the greater of:(1)  the minimum reserve computed in accordance with Section 425.064, including Section 425.064(c); or(2)  the minimum reserve computed in accordance with this section.|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|
TX Ins Code § 425.069 (2021)
2021 Texas Statutes|Insurance Code|Title 4 - Regulation of Solvency|Subtitle B - Reserves and Investments|Chapter 425 - Reserves and Investments for Life Insurance Companies and Related Entities|Subchapter B. Standard Valuation Law|Section 425.069. Reserve Computation: Indeterminate Premium Plans and Certain Other Plans

Sec. 425.069.  RESERVE COMPUTATION:  INDETERMINATE PREMIUM PLANS AND CERTAIN OTHER PLANS.  (a)  For a life insurance plan that provides for future premium determination, the amounts of which are to be determined by the insurance company based on estimates of future experience, or a life insurance plan or annuity for which the minimum reserves cannot be determined by the methods described by Sections 425.064, 425.065, and 425.068, the reserves held must:(1)  be appropriate in relation to the benefits and the pattern of premiums for the plan; and(2)  be computed by a method that is consistent with the principles of this subchapter, as determined by commissioner rule.(b)  Notwithstanding any other provision of state law, the commissioner must affirmatively approve a policy, contract, or certificate that provides life insurance under a plan described by Subsection (a) before the policy, contract, or certificate may be marketed, issued, delivered, or used in this state.|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|
TX Ins Code § 425.071 (2021)
2021 Texas Statutes|Insurance Code|Title 4 - Regulation of Solvency|Subtitle B - Reserves and Investments|Chapter 425 - Reserves and Investments for Life Insurance Companies and Related Entities|Subchapter B. Standard Valuation Law|Section 425.071. Lapse Rates in Minimum Standard of Valuation

Sec. 425.071. LAPSE RATES IN MINIMUM STANDARD OF VALUATION.  (a)  The minimum standard of valuation under this subchapter may include lapse rates in the calculation of reserves for a secondary guarantee in universal life contracts issued after December 31, 2006.(b)  For purposes of this section, a secondary guarantee refers to specified conditions in a universal life contract that, if satisfied, provide for death benefits to remain in effect regardless of the accumulation value in the contract.(c)  Lapse rates authorized by this section may not exceed two percent per year.(d)  The commissioner is authorized to adopt rules to implement this section.|Added by Acts 2007, 80th Leg., R.S., Ch. 681 (H.B. 1590), Sec. 1, eff. June 15, 2007.|
TX Ins Code § 425.072 (2021)
2021 Texas Statutes|Insurance Code|Title 4 - Regulation of Solvency|Subtitle B - Reserves and Investments|Chapter 425 - Reserves and Investments for Life Insurance Companies and Related Entities|Subchapter B. Standard Valuation Law|Section 425.072. Minimum Standard for Accident and Health Insurance Contracts

Sec. 425.072.  MINIMUM STANDARD FOR ACCIDENT AND HEALTH INSURANCE CONTRACTS.  (a)  The standard prescribed by the valuation manual for accident and health insurance contracts issued on or after the operative date of the valuation manual is the minimum standard of valuation required under Section 425.0535.(b)  For disability, accident and sickness, and accident and health insurance contracts issued before the operative date of the valuation manual, the minimum standard of valuation is the standard in existence before the operative date of the valuation manual in addition to any requirements established by the commissioner and adopted by rule.|Added by Acts 2015, 84th Leg., R.S., Ch. 313 (S.B. 1654), Sec. 15, eff. September 1, 2015.|
TX Ins Code § 425.074 (2021)
2021 Texas Statutes|Insurance Code|Title 4 - Regulation of Solvency|Subtitle B - Reserves and Investments|Chapter 425 - Reserves and Investments for Life Insurance Companies and Related Entities|Subchapter B. Standard Valuation Law|Section 425.074. Requirements of a Principle-Based Valuation

Sec. 425.074.  REQUIREMENTS OF A PRINCIPLE-BASED VALUATION.  (a)  A company shall establish reserves using a principle-based valuation that meets the conditions for policies or contracts provided by the valuation manual.  At a minimum, the valuation shall:(1)  quantify the benefits and guarantees, and the funding, associated with the contracts and their risks at a level of conservatism that reflects conditions that include unfavorable events that have a reasonable probability of occurring during the terms of the contracts;(2)  with respect to policies and contracts with significant tail risk, reflect conditions appropriately adverse to quantify the tail risk;(3)  incorporate assumptions, risk analysis methods, and financial models and management techniques that are consistent with those used in the company's overall risk assessment process, while recognizing potential differences in financial reporting structures and any prescribed assumptions or methods;(4)  incorporate assumptions:(A)  prescribed by the valuation manual; or(B)  established:(i)  using the company's available experience, to the extent that data is relevant and statistically credible; or(ii)  to the extent that the company data is not available, relevant, or statistically credible, using other relevant, statistically credible experience; and(5)  provide margins for uncertainty, including adverse deviation and estimation error, such that the greater the uncertainty the larger the margin and resulting reserve.(b)  A company using a principle-based valuation for one or more policies or contracts subject to this section and as specified by the valuation manual shall:(1)  establish procedures for corporate governance and oversight of the actuarial valuation function consistent with procedures specified by the valuation manual;(2)  provide to the commissioner and the company's board of directors an annual certification of the effectiveness of the internal controls with respect to the principle-based valuation; and(3)  develop, and file with the commissioner on request, a principle-based valuation report that complies with standards prescribed in the valuation manual.(c)  A company's internal controls with respect to the principle-based valuation must be designed to ensure that all material risks inherent in the liabilities and associated assets subject to the valuation are included in the valuation, and that valuations are made in accordance with the valuation manual.  The certification described by Subsection (b)(2) must be based on the controls in place as of the end of the preceding calendar year.(d)  A principle-based valuation may include a prescribed formulaic reserve component.|Added by Acts 2015, 84th Leg., R.S., Ch. 313 (S.B. 1654), Sec. 15, eff. September 1, 2015.|
TX Ins Code § 425.075 (2021)
2021 Texas Statutes|Insurance Code|Title 4 - Regulation of Solvency|Subtitle B - Reserves and Investments|Chapter 425 - Reserves and Investments for Life Insurance Companies and Related Entities|Subchapter B. Standard Valuation Law|Section 425.075. Experience Reporting for Policies in Force on or After Operative Date of Valuation Manual

Sec. 425.075.  EXPERIENCE REPORTING FOR POLICIES IN FORCE ON OR AFTER OPERATIVE DATE OF VALUATION MANUAL.  A company shall submit mortality, morbidity, policyholder behavior, or expense experience and other data as prescribed in the valuation manual.|Added by Acts 2015, 84th Leg., R.S., Ch. 313 (S.B. 1654), Sec. 15, eff. September 1, 2015.|
TX Ins Code § 425.077 (2021)
2021 Texas Statutes|Insurance Code|Title 4 - Regulation of Solvency|Subtitle B - Reserves and Investments|Chapter 425 - Reserves and Investments for Life Insurance Companies and Related Entities|Subchapter B. Standard Valuation Law|Section 425.077. Single State Exemption

Sec. 425.077.  SINGLE STATE EXEMPTION.  The commissioner may exempt specific product forms or product lines of a domestic company that is licensed and doing business only in this state from the requirements of Section 425.073 if:(1)  the commissioner has issued an exemption in writing to the company and has not subsequently revoked the exemption in writing; and(2)  the company computes reserves using assumptions and methods used before the operative date of the valuation manual in addition to any requirements established by the commissioner and adopted by rule.|Added by Acts 2015, 84th Leg., R.S., Ch. 313 (S.B. 1654), Sec. 15, eff. September 1, 2015.|