reglab/statecodes huggingface dataset:
2023 Texas Statutes › Insurance Code › Title 7 - Life Insurance and Annuities › Subtitle A - Life Insurance in General › Chapter 1104 - Life Insurance and Annuity Contracts Issued to Certain Persons › Subchapter B. Trustee Named as Beneficiary of Life Insurance Policy › Section 1104.021. Trustee Named as Beneficiary in Policy

Sec. 1104.021.  TRUSTEE NAMED AS BENEFICIARY IN POLICY.  (a)  An individual may make a trust agreement providing that the proceeds of a life insurance policy insuring the individual be made payable to a trustee named as beneficiary in the policy.  The validity of a trust agreement or declaration of trust that is designated as a beneficiary of a life insurance policy is not affected by whether any corpus of the trust exists in addition to the right of the trustee to receive insurance proceeds.
(b)  Life insurance policy proceeds described by Subsection (a) shall be paid to the trustee.  The trustee shall hold and dispose of the proceeds as provided by the trust agreement.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 2, eff. June 1, 2003.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 672 (H.B. 2368), Sec. 1, eff. September 1, 2009.
2023 Texas Statutes › Insurance Code › Title 7 - Life Insurance and Annuities › Subtitle A - Life Insurance in General › Chapter 1104 - Life Insurance and Annuity Contracts Issued to Certain Persons › Subchapter B. Trustee Named as Beneficiary of Life Insurance Policy › Section 1104.022. Trustee Named as Beneficiary in Will

Sec. 1104.022.  TRUSTEE NAMED AS BENEFICIARY IN WILL.  (a)  A life insurance policy may provide that the beneficiary of the policy be a trustee designated by will in accordance with the policy provisions and the requirements of the insurance company.
(b)  Except as provided by Subsection (c), on probate of a will described by Subsection (a), the life insurance policy proceeds shall be paid to the trustee.  The trustee shall hold and dispose of the proceeds as provided under the terms of the will as the will existed on the date of the testator's death and in the same manner as other testamentary trusts are administered.
(c)  Except as otherwise provided by agreement with the insurance company during the life of the insured, the insurance company shall pay the life insurance policy proceeds to the executors, administrators, or assigns of the insured if, during the 18-month period beginning on the first day after the date of the insured's death:
(1)  a qualified trustee does not make to the insurance company a claim to the proceeds;  or
(2)  the insurance company is provided satisfactory evidence showing that there is or will be no trustee to receive the proceeds.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 2, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 7 - Life Insurance and Annuities › Subtitle A - Life Insurance in General › Chapter 1104 - Life Insurance and Annuity Contracts Issued to Certain Persons › Subchapter B. Trustee Named as Beneficiary of Life Insurance Policy › Section 1104.023. Debts; Inheritance Tax

Sec. 1104.023.  DEBTS;  INHERITANCE TAX.  Life insurance policy proceeds received by a trustee under this subchapter are not subject to debts of the insured or to inheritance tax to any greater extent than if the proceeds were payable to a beneficiary other than the executor or administrator of the insured's estate.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 2, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 7 - Life Insurance and Annuities › Subtitle A - Life Insurance in General › Chapter 1104 - Life Insurance and Annuity Contracts Issued to Certain Persons › Subchapter B. Trustee Named as Beneficiary of Life Insurance Policy › Section 1104.024. Commingling

Sec. 1104.024.  COMMINGLING.  Life insurance policy proceeds received by a trustee under this subchapter may be commingled with any other assets properly coming into the trust.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 2, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 7 - Life Insurance and Annuities › Subtitle A - Life Insurance in General › Chapter 1104 - Life Insurance and Annuity Contracts Issued to Certain Persons › Subchapter B. Trustee Named as Beneficiary of Life Insurance Policy › Section 1104.025. Certain Prior Beneficiary Designations Not Affected

Sec. 1104.025.  CERTAIN PRIOR BENEFICIARY DESIGNATIONS NOT AFFECTED.  This subchapter does not affect the validity of a life insurance policy beneficiary designation made before July 1, 1967, that names as beneficiary a trustee of a trust established by will.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 2, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 7 - Life Insurance and Annuities › Subtitle A - Life Insurance in General › Chapter 1105 - Standard Nonforfeiture Law for Life Insurance › Subchapter A. General Provisions › Section 1105.001. Short Title

Sec. 1105.001.  SHORT TITLE.  This chapter may be cited as the Standard Nonforfeiture Law for Life Insurance.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 2, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 7 - Life Insurance and Annuities › Subtitle A - Life Insurance in General › Chapter 1105 - Standard Nonforfeiture Law for Life Insurance › Subchapter A. General Provisions › Section 1105.0015. Definition

Sec. 1105.0015.  DEFINITION.  In this chapter, "operative date of the valuation manual" means the date, if any, on which the valuation manual described by Subchapter B, Chapter 425 (Standard Valuation Law), becomes operative as provided by that subchapter.
Added by Acts 2015, 84th Leg., R.S., Ch. 313 (S.B. 1654), Sec. 16, eff. September 1, 2015.
2023 Texas Statutes › Insurance Code › Title 7 - Life Insurance and Annuities › Subtitle A - Life Insurance in General › Chapter 1105 - Standard Nonforfeiture Law for Life Insurance › Subchapter A. General Provisions › Section 1105.002. Applicability of Chapter

Sec. 1105.002.  APPLICABILITY OF CHAPTER.  (a)  This chapter applies to a policy issued by a company on or after January 1, 1974.
(b)  This chapter also applies to a policy issued by a company after a date specified in a written notice:
(1)  that was filed by the company with the State Board of Insurance after August 23, 1963, but before January 1, 1974;  and
(2)  under which the company filing the notice elected to comply before January 1, 1974, with the law codified by this chapter.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 2, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 7 - Life Insurance and Annuities › Subtitle A - Life Insurance in General › Chapter 1105 - Standard Nonforfeiture Law for Life Insurance › Subchapter A. General Provisions › Section 1105.003. Exemptions

Sec. 1105.003.  EXEMPTIONS.  (a)  This chapter does not apply to:
(1)  reinsurance;
(2)  group insurance;
(3)  pure endowment;
(4)  an annuity or reversionary annuity contract;
(5)  a term policy of uniform amount that:
(A)  does not provide guaranteed nonforfeiture or endowment benefits or renewal of the policy;
(B)  has a term of 20 years or less that expires before the insured reaches 71 years of age;  and
(C)  has uniform premiums that are payable during the entire term of the policy;
(6)  a term policy of decreasing amount:
(A)  that does not provide guaranteed nonforfeiture or endowment benefits;  and
(B)  on which each adjusted premium, computed as specified by Subchapter B or D, is less than the adjusted premium computed in that manner for a term policy of uniform amount, or a renewal of a term policy of uniform amount, that:
(i)  does not provide guaranteed nonforfeiture or endowment benefits;
(ii)  is issued at the same age and for the same initial amount of insurance;
(iii)  has a term of 20 years or less and expires before the insured reaches 71 years of age;  and
(iv)  has uniform premiums that are payable during the entire term of the policy;
(7)  a policy:
(A)  that does not provide guaranteed nonforfeiture or endowment benefits;  and
(B)  for which no cash surrender value, if any, or present value of any paid-up nonforfeiture benefit, at the beginning of any policy year, computed as specified by Section 1105.007, 1105.008, 1105.009, Subchapter B, or Subchapter D, exceeds 2-1/2 percent of the amount of insurance at the beginning of the same policy year;
(8)  a policy delivered outside this state through an agent or other representative of the company that issued the policy;  or
(9)  a policy that:
(A)  does not provide for cash values or nonforfeiture values;  and
(B)  meets the requirements of Section 884.403(b).
(b)  For purposes of determining the applicability of this chapter, the age at expiry of a joint term life insurance policy is the age at expiry of the oldest insured life on that date.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 2, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 7 - Life Insurance and Annuities › Subtitle A - Life Insurance in General › Chapter 1105 - Standard Nonforfeiture Law for Life Insurance › Subchapter A. General Provisions › Section 1105.005. Computation of Adjusted Premiums and Present Values; Mortality Tables and Interest Rates

Sec. 1105.005.  COMPUTATION OF ADJUSTED PREMIUMS AND PRESENT VALUES;  MORTALITY TABLES AND INTEREST RATES.  (a)  Except as provided by Subsection (b) or (e) or Section 1105.055, 1105.152, or 1105.153, an adjusted premium or present value determined under this chapter must be computed on the basis of:
(1)  the Commissioners 1941 Standard Ordinary Mortality Table for a policy of ordinary insurance;  and
(2)  the Commissioners 1941 Standard Industrial Mortality Table for a policy of industrial insurance.
(b)  For a category of ordinary insurance issued to insure a female risk, an adjusted premium or present value may be computed according to an age not more than three years younger than the actual age of the insured.
(c)  All computations must be made using the rate of interest, not to exceed 3-1/2 percent a year, specified by the policy for computing cash surrender values and paid-up nonforfeiture benefits.
(d)  In the computation of the present value of any paid-up term insurance with accompanying pure endowment, if any, offered as a nonforfeiture benefit, the rates of mortality assumed may be not more than 130 percent of the rates shown in the applicable mortality table.
(e)  Subject to approval by the department, a company may specify a mortality table other than the applicable table required by this section for use in computing an adjusted premium or present value for insurance issued on a substandard basis.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 2, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 7 - Life Insurance and Annuities › Subtitle A - Life Insurance in General › Chapter 1105 - Standard Nonforfeiture Law for Life Insurance › Subchapter A. General Provisions › Section 1105.006. Determination of Rated Age

Sec. 1105.006.  DETERMINATION OF RATED AGE.  For purposes of this chapter, the date a policy is issued is the date as of which the rated age of the insured is determined.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 2, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 7 - Life Insurance and Annuities › Subtitle A - Life Insurance in General › Chapter 1105 - Standard Nonforfeiture Law for Life Insurance › Subchapter A. General Provisions › Section 1105.007. Computation of Cash Surrender Value Following Default

Sec. 1105.007.  COMPUTATION OF CASH SURRENDER VALUE FOLLOWING DEFAULT.  (a)  Any cash surrender value available under a policy on a default in payment of a premium due on a policy anniversary, regardless of whether required by Section 1105.004, must be an amount not less than the amount, if any, by which the present value, on the policy anniversary, of the future guaranteed benefits that would have been available under the policy, including any existing paid-up additions, had there not been a default exceeds the sum of:
(1)  the then present value of the adjusted premiums as determined under Subchapter B or D that correspond to premiums that would have become due on and after the policy anniversary;  and
(2)  the amount of any indebtedness to the company on the policy.
(b)  Subsection (a) does not require a cash surrender value greater than the reserve for the policy computed as provided by Subchapter B, Chapter 425.
(c)  For a policy to which Subchapter B applies and that by rider or supplemental policy provision provides supplemental life insurance or annuity benefits at the option of the insured and for an identifiable additional premium, the cash surrender value computed under Subsection (a) must be an amount not less than the sum of:
(1)  the cash surrender value as computed under Subsection (a) for an otherwise similar policy issued at the same age without the rider or supplemental policy provision;  and
(2)  the cash surrender value as computed under Subsection (a) for a policy that provides only the benefits provided by the rider or supplemental policy provision.
(d)  For a family policy to which Subchapter B applies and that defines a primary insured and provides term insurance on the life of the spouse of the primary insured that expires before the spouse reaches 71 years of age, the cash surrender value as computed under Subsection (a) must be an amount not less than the sum of:
(1)  the cash surrender value as computed under Subsection (a) for an otherwise similar policy issued at the same age that does not provide the term insurance on the life of the spouse;  and
(2)  the cash surrender value as computed under Subsection (a) for a policy that provides only the benefits provided by the term insurance on the life of the spouse.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 2, eff. June 1, 2003.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 2F.004, eff. April 1, 2009.
2023 Texas Statutes › Insurance Code › Title 7 - Life Insurance and Annuities › Subtitle A - Life Insurance in General › Chapter 1105 - Standard Nonforfeiture Law for Life Insurance › Subchapter A. General Provisions › Section 1105.008. Computation of Cash Surrender Value on Surrender Following Policy Anniversary

Sec. 1105.008.  COMPUTATION OF CASH SURRENDER VALUE ON SURRENDER FOLLOWING POLICY ANNIVERSARY.  Any cash surrender value available not later than the 30th day after the date of a policy anniversary under a policy paid up by completion of all premium payments or a policy continued under any paid-up nonforfeiture benefit, regardless of whether required by Section 1105.004, must be an amount not less than the present value, on the policy anniversary, of the future guaranteed benefits available under the policy, including any existing paid-up additions, less any indebtedness to the company on the policy.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 2, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 7 - Life Insurance and Annuities › Subtitle A - Life Insurance in General › Chapter 1105 - Standard Nonforfeiture Law for Life Insurance › Subchapter A. General Provisions › Section 1105.009. Computation of Paid-Up Nonforfeiture Benefits

Sec. 1105.009.  COMPUTATION OF PAID-UP NONFORFEITURE BENEFITS.  Any paid-up nonforfeiture benefit available under the policy on default in the payment of a premium due on a policy anniversary must be such that its present value as of the policy anniversary is at least equal to:
(1)  the cash surrender value then available under the policy;  or
(2)  if a cash surrender value is not available under the policy, the cash surrender value that would have been required by this chapter in the absence of the condition that premiums must have been paid for at least a specified period.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 2, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 7 - Life Insurance and Annuities › Subtitle A - Life Insurance in General › Chapter 1105 - Standard Nonforfeiture Law for Life Insurance › Subchapter A. General Provisions › Section 1105.010. Proration of Values; Net Value of Paid-Up Additions

Sec. 1105.010.  PRORATION OF VALUES;  NET VALUE OF PAID-UP ADDITIONS.  (a)  Any cash surrender value and any paid-up nonforfeiture benefit available under a policy on default in the payment of a premium due at any time other than on the policy anniversary must be computed with allowance for the lapse of time and the payment of fractional premiums after the preceding policy anniversary, except that a cash surrender value or nonforfeiture benefit is not required unless the cash surrender value or nonforfeiture benefit was required on the preceding policy anniversary.
(b)  A value determined under Sections 1105.005-1105.009, Subchapter B, or Subchapter D may be computed on the assumption that any death benefit is payable at the end of the policy year of death.
(c)  The net value of any paid-up additions, other than paid-up term additions, may not be less than the amounts used to provide those additions.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 2, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 7 - Life Insurance and Annuities › Subtitle A - Life Insurance in General › Chapter 1105 - Standard Nonforfeiture Law for Life Insurance › Subchapter A. General Provisions › Section 1105.011. Inclusion of Certain Additional Benefits in Computing Nonforfeiture Benefits Not Required

Sec. 1105.011.  INCLUSION OF CERTAIN ADDITIONAL BENEFITS IN COMPUTING NONFORFEITURE BENEFITS NOT REQUIRED.  (a)  Notwithstanding Section 1105.007 or 1105.008, additional benefits described by Subsection (b), and premiums for those benefits, may not be included in computing a cash surrender value or nonforfeiture benefits required by this chapter.  Additional benefits described by Subsection (b) are not required to be included in any paid-up nonforfeiture benefits.
(b)  This section applies to additional benefits payable:
(1)  in the event of death or dismemberment by accident;
(2)  in the event of total and permanent disability;
(3)  as reversionary annuity or deferred reversionary annuity benefits;
(4)  as term insurance benefits provided by a rider or supplemental policy provision to which, if issued as a separate policy, this chapter would not apply;
(5)  as term insurance on the life of a child that:
(A)  is provided in a policy on the life of a parent of the child;
(B)  expires before the child reaches 26 years of age;
(C)  is uniform in amount after the child reaches one year of age;  and
(D)  has not become paid up by reason of the death of a parent of the child;  or
(6)  as other policy benefits additional to life insurance and endowment benefits.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 2, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 7 - Life Insurance and Annuities › Subtitle A - Life Insurance in General › Chapter 1105 - Standard Nonforfeiture Law for Life Insurance › Subchapter B. Computation of Adjusted Premiums Using Nonforfeiture Net Level Premium Method › Section 1105.051. Applicability of Subchapter

Sec. 1105.051.  APPLICABILITY OF SUBCHAPTER.  (a)  This subchapter applies to a policy issued on or after January 1, 1989.
(b)  This subchapter also applies to a policy issued by a company after the date specified in a written notice:
(1)  that was filed with the State Board of Insurance after August 31, 1981, but before January 1, 1989;  and
(2)  under which the company filing the notice elected to comply before January 1, 1989, with the law codified by this subchapter.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 2, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 7 - Life Insurance and Annuities › Subtitle A - Life Insurance in General › Chapter 1105 - Standard Nonforfeiture Law for Life Insurance › Subchapter B. Computation of Adjusted Premiums Using Nonforfeiture Net Level Premium Method › Section 1105.052. Computation of Adjusted Premiums Using Nonforfeiture Net Level Premium Method

Sec. 1105.052.  COMPUTATION OF ADJUSTED PREMIUMS USING NONFORFEITURE NET LEVEL PREMIUM METHOD.  (a)  Except as provided by Section 1105.054 and subject to Subsection (b), the adjusted premiums for a policy to which this section applies must be computed on an annual basis and must be a uniform percentage of the respective premiums specified by the policy for each policy year so that the present value, at the date of issue of the policy, of all adjusted premiums is equal to the sum of:
(1)  the then present value of the future guaranteed benefits available under the policy;
(2)  one percent of:
(A)  the amount of insurance, if the insurance is uniform in amount;  or
(B)  the average amount of insurance at the beginning of each of the first 10 policy years;  and
(3)  125 percent of the nonforfeiture net level premium as determined under Subsection (d).
(b)  The amount of premiums specified by the policy and used in computing adjusted premiums under Subsection (a) does not include:
(1)  an amount payable as an extra premium to cover an impairment or special hazard;  or
(2)  any uniform annual contract charge or policy fee specified by the policy in a statement of the method to be used to compute the cash surrender values and paid-up nonforfeiture benefits.
(c)  In applying the percentage specified by Subsection (a)(3), a nonforfeiture net level premium may not be considered to exceed four percent of:
(1)  the amount of insurance, if the insurance is uniform in amount;  or
(2)  the average amount of insurance at the beginning of each of the first 10 policy years.
(d)  The nonforfeiture net level premium must be equal to the present value, at the date of issue of the policy, of the guaranteed benefits available under the policy divided by the present value, on the date of issue of the policy, of an annuity of one per year payable on the date of issue of the policy and on each anniversary of the policy on which a premium becomes due.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 2, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 7 - Life Insurance and Annuities › Subtitle A - Life Insurance in General › Chapter 1105 - Standard Nonforfeiture Law for Life Insurance › Subchapter B. Computation of Adjusted Premiums Using Nonforfeiture Net Level Premium Method › Section 1105.054. Computation of Amounts for Policy Issued on Substandard Basis

Sec. 1105.054.  COMPUTATION OF AMOUNTS FOR POLICY ISSUED ON SUBSTANDARD BASIS.  (a)  This section applies only to a policy issued on a substandard basis that provides reduced graded amounts of insurance so that, in each policy year, the policy has the same tabular mortality cost as an otherwise similar policy issued on the standard basis that provides higher uniform amounts of insurance.  This section applies notwithstanding any provision of this subchapter to the contrary.
(b)  Adjusted premiums and present values as to a policy to which this section applies may be computed as if the policy were issued to provide the higher uniform amounts of insurance of an otherwise similar policy issued on the standard basis.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 2, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 7 - Life Insurance and Annuities › Subtitle A - Life Insurance in General › Chapter 1105 - Standard Nonforfeiture Law for Life Insurance › Subchapter B. Computation of Adjusted Premiums Using Nonforfeiture Net Level Premium Method › Section 1105.056. Nonforfeiture Interest Rate

Sec. 1105.056.  NONFORFEITURE INTEREST RATE.  (a)  For a policy issued before the operative date of the valuation manual, the annual nonforfeiture interest rate for a policy issued in a particular calendar year is equal to 125 percent of the calendar year statutory valuation interest rate for that policy as defined by Subchapter B, Chapter 425, rounded to the nearest one-fourth of one percent, except that the rate may not be less than four percent.
(b)  For a policy issued on or after the operative date of the valuation manual, the annual nonforfeiture interest rate for any policy issued in a particular calendar year is provided by the valuation manual.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 2, eff. June 1, 2003.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 2F.005, eff. April 1, 2009.
Acts 2015, 84th Leg., R.S., Ch. 313 (S.B. 1654), Sec. 18, eff. September 1, 2015.
2023 Texas Statutes › Insurance Code › Title 7 - Life Insurance and Annuities › Subtitle A - Life Insurance in General › Chapter 1105 - Standard Nonforfeiture Law for Life Insurance › Subchapter B. Computation of Adjusted Premiums Using Nonforfeiture Net Level Premium Method › Section 1105.057. Refiling of Policy Provisions Not Required

Sec. 1105.057.  REFILING OF POLICY PROVISIONS NOT REQUIRED.  Notwithstanding any provision of this code to the contrary, as to a policy to which this subchapter applies, a refiling of nonforfeiture values or of the method of computing nonforfeiture values for a previously approved policy form that involves only a change in the interest rate or mortality table used to compute nonforfeiture values does not require refiling of any provision of the policy form.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 2, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 7 - Life Insurance and Annuities › Subtitle A - Life Insurance in General › Chapter 1105 - Standard Nonforfeiture Law for Life Insurance › Subchapter C. Nonforfeiture Benefits for Certain Plans › Section 1105.101. Nonforfeiture Benefits for Indeterminate Premium Plans and Certain Other Plans

Sec. 1105.101.  NONFORFEITURE BENEFITS FOR INDETERMINATE PREMIUM PLANS AND CERTAIN OTHER PLANS.  (a)  This section applies to a plan of life insurance that:
(1)  provides for future premium determination, the amounts of which are to be determined by the insurance company based on then estimates of future experience;  or
(2)  is such that minimum values cannot be determined by a method described by Sections 1105.004-1105.009, Subchapter B, or Subchapter D.
(b)  The department must be satisfied that:
(1)  the benefits provided under the plan are substantially as favorable to policyholders and insureds as the minimum benefits otherwise required by Sections 1105.004-1105.009, Subchapter B, or Subchapter D;  and
(2)  the benefits and the pattern of premiums of the plan are not such as to mislead prospective policyholders or insured persons.
(c)  The cash surrender values and paid-up nonforfeiture benefits provided by the plan may not be less than the minimum values and benefits required for the plan computed by a method consistent with the principles of this subchapter as determined under rules adopted by the commissioner.
(d)  Notwithstanding any other law of this state, any policy, contract, or certificate providing life insurance under the plan must be approved by the department before the plan may be marketed, issued, delivered, or used in this state.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 2, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 7 - Life Insurance and Annuities › Subtitle A - Life Insurance in General › Chapter 1105 - Standard Nonforfeiture Law for Life Insurance › Subchapter D. Computation of Adjusted Premiums for Certain Policies › Section 1105.152. Computation of Adjusted Premiums for Certain Ordinary Policies Issued Before January 1, 1989

Sec. 1105.152.  COMPUTATION OF ADJUSTED PREMIUMS FOR CERTAIN ORDINARY POLICIES ISSUED BEFORE JANUARY 1, 1989.  (a)  Except as provided by Subsection (b), this section applies only to an ordinary policy to which Subchapter B does not apply and that is issued on or after January 1, 1974 and before January 1, 1989.
(b)  This section also applies to an ordinary policy issued by a company after a date specified in a written notice:
(1)  that was filed by the company with the State Board of Insurance after August 23, 1963, but before January 1, 1974;  and
(2)  under which the company filing the notice elected to comply before January 1, 1974, with the law codified by this section.
(c)  An adjusted premium or present value determined under this chapter as to a policy to which this section applies must be computed on the basis of the Commissioners 1958 Standard Ordinary Mortality Table.
(d)  A computation as to a policy to which this section applies must be made using the rate of interest specified by the policy for computing cash surrender values and paid-up nonforfeiture benefits, except that the rate of interest may not exceed:
(1)  3-1/2 percent a year for a policy issued before June 14, 1973;
(2)  4 percent a year for a policy issued on or after June 14, 1973, and before August 29, 1977;
(3)  5-1/2 percent a year for a policy issued on or after August 29, 1977, other than a single premium whole life or endowment insurance policy;  or
(4)  6-1/2 percent a year for a single premium whole life or endowment insurance policy issued on or after August 29, 1977.
(e)  For a category of ordinary insurance issued to insure a female risk:
(1)  an adjusted premium or present value for a policy issued before August 29, 1977, may be computed according to an age not more than three years younger than the actual age of the insured;  and
(2)  an adjusted premium or present value for a policy issued on or after August 29, 1977, may be computed according to an age not more than six years younger than the actual age of the insured.
(f)  In the computation of the present value of paid-up term insurance with accompanying pure endowment, if any, offered as a nonforfeiture benefit, the rates of mortality assumed may not exceed the rates shown in the Commissioners 1958 Extended Term Insurance Table.
(g)  Subject to approval by the department, a company may specify a mortality table other than the table required by this section for use in computing an adjusted premium or present value for insurance issued on a substandard basis.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 2, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 7 - Life Insurance and Annuities › Subtitle A - Life Insurance in General › Chapter 1105 - Standard Nonforfeiture Law for Life Insurance › Subchapter D. Computation of Adjusted Premiums for Certain Policies › Section 1105.153. Computation of Adjusted Premiums for Certain Industrial Policies Issued Before January 1, 1989

Sec. 1105.153.  COMPUTATION OF ADJUSTED PREMIUMS FOR CERTAIN INDUSTRIAL POLICIES ISSUED BEFORE JANUARY 1, 1989.  (a)  Except as provided by Subsection (b), this section applies only to an industrial policy to which Subchapter B does not apply and that is issued on or after January 1, 1974, and before January 1, 1989.
(b)  This section also applies to an industrial policy issued by a company after a date specified in a written notice:
(1)  that was filed by the company with the State Board of Insurance after August 23, 1963, but before January 1, 1974;  and
(2)  under which the company filing the notice elected to comply before January 1, 1974, with the law codified by this section.
(c)  An adjusted premium or present value determined under this chapter as to a policy to which this section applies must be computed on the basis of the Commissioners 1961 Standard Industrial Mortality Table.
(d)  A computation as to a policy to which this section applies must be made using the rate of interest specified by the policy for computing cash surrender values and paid-up nonforfeiture benefits, except that the rate of interest may not exceed:
(1)  3-1/2 percent a year for a policy issued before June 14, 1973;
(2)  4 percent a year for a policy issued on or after June 14, 1973, and before August 29, 1977;
(3)  5-1/2 percent a year for a policy issued on or after August 29, 1977, other than a single premium whole life or endowment insurance policy;  or
(4)  6-1/2 percent a year for a single premium whole life or endowment insurance policy issued on or after August 29, 1977.
(e)  In the computation of the present value of paid-up term insurance with accompanying pure endowment, if any, offered as a nonforfeiture benefit, the rates of mortality assumed may not exceed the rates shown in the Commissioners 1961 Industrial Extended Term Insurance Table.
(f)  Subject to approval by the department, a company may specify a mortality table other than the table required by this section for use in computing an adjusted premium or present value for insurance issued on a substandard basis.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 2, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 7 - Life Insurance and Annuities › Subtitle A - Life Insurance in General › Chapter 1106 - Reinstatement of Certain Life Insurance Policies › Section 1106.001. Applicability of Chapter

Sec. 1106.001.  APPLICABILITY OF CHAPTER.  (a)  This chapter applies to each individual life insurance policy issued to a resident of this state by an insurer authorized to engage in the business of insurance in this state, including a stipulated premium company and a fraternal benefit society, that is subject to lapse on or after September 1, 1995.
(b)  This chapter does not apply to a life insurance policy that provides nonforfeiture benefits in accordance with the requirements of this code.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 2, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 7 - Life Insurance and Annuities › Subtitle A - Life Insurance in General › Chapter 1106 - Reinstatement of Certain Life Insurance Policies › Section 1106.002. Reinstatement Required; Exception

Sec. 1106.002.  REINSTATEMENT REQUIRED;  EXCEPTION.  (a)  On the lapse of an individual life insurance policy following the unintentional default in the payment of premiums caused by the mental incapacity of the insured, a person is entitled to have the policy reinstated under this chapter if:
(1)  the policy had been in effect continuously for at least five years immediately preceding the lapse;  and
(2)  there was not a default in the payment of premiums on the policy during the period described by Subdivision (1).
(b)  The insurer is not required to reinstate a policy or pay benefits under this chapter if the insured first became mentally incapacitated after the expiration of an applicable grace period contained in the policy.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 2, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 7 - Life Insurance and Annuities › Subtitle A - Life Insurance in General › Chapter 1106 - Reinstatement of Certain Life Insurance Policies › Section 1106.003. Mental Incapacity Defined

Sec. 1106.003.  MENTAL INCAPACITY DEFINED.  In this chapter, "mental incapacity" means a lack of the ability to:
(1)  understand and appreciate the nature and consequences of a decision regarding the failure to pay a premium when due;  and
(2)  reach an informed decision in the matter.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 2, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 7 - Life Insurance and Annuities › Subtitle A - Life Insurance in General › Chapter 1106 - Reinstatement of Certain Life Insurance Policies › Section 1106.004. Diagnosis of Mental Incapacity Required

Sec. 1106.004.  DIAGNOSIS OF MENTAL INCAPACITY REQUIRED.  For purposes of this chapter, mental incapacity must be:
(1)  established by the clinical diagnosis of a physician licensed in this state who is qualified to make the diagnosis;  and
(2)  based on reasonable medical judgment.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 2, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 7 - Life Insurance and Annuities › Subtitle A - Life Insurance in General › Chapter 1106 - Reinstatement of Certain Life Insurance Policies › Section 1106.005. Request for Reinstatement; Limitation

Sec. 1106.005.  REQUEST FOR REINSTATEMENT;  LIMITATION.  (a)  A request for reinstatement of a policy under this chapter and proof of mental incapacity may be filed with the insurer by:
(1)  the insured;
(2)  the insured's legal guardian or other legal representative;  or
(3)  the legal representative of the insured's estate.
(b)  The request and the proof of mental incapacity must be filed not later than the first anniversary of the date the policy lapses.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 2, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 7 - Life Insurance and Annuities › Subtitle A - Life Insurance in General › Chapter 1106 - Reinstatement of Certain Life Insurance Policies › Section 1106.006. Reinstatement

Sec. 1106.006.  REINSTATEMENT.  (a)  After the requirements of Section 1106.005 have been satisfied, the insurer shall reinstate the policy.
(b)  The policy must be reinstated within one year from the date of lapse on payment of:
(1)  the premiums owed from the date of initial lapse to the date of reinstatement;  and
(2)  interest on the premiums at a rate not to exceed six percent a year for the period.
(c)  The insurer may not require evidence of insurability as a condition of reinstatement.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 2, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 7 - Life Insurance and Annuities › Subtitle A - Life Insurance in General › Chapter 1106 - Reinstatement of Certain Life Insurance Policies › Section 1106.007. Effect of Reinstatement

Sec. 1106.007.  EFFECT OF REINSTATEMENT.  On reinstatement of the policy, the original contractual provisions apply as if the coverage had been continuous.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 2, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 7 - Life Insurance and Annuities › Subtitle A - Life Insurance in General › Chapter 1106 - Reinstatement of Certain Life Insurance Policies › Section 1106.008. Reduction in Benefits

Sec. 1106.008.  REDUCTION IN BENEFITS.  If there is an uncontroverted claim for benefits in an amount that exceeds the amount of premiums and interest owed and unpaid under a policy that is eligible for reinstatement under this chapter, the insurer shall pay the amount of benefits owed reduced by the amount of premiums and interest owed and unpaid on the date the benefits are paid.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 2, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 7 - Life Insurance and Annuities › Subtitle A - Life Insurance in General › Chapter 1106 - Reinstatement of Certain Life Insurance Policies › Section 1106.009. Disclosure

Sec. 1106.009.  DISCLOSURE.  (a)  Each insurer shall disclose fully to each policyholder or insured the requirements of this chapter.
(b)  As to a policy to which this chapter applies that was issued on or after September 1, 1995, an insurer may make the disclosure required by Subsection (a):
(1)  not later than the 90th day after the date the policy lapses;  or
(2)  by including the disclosure information in the policy or in an endorsement attached to the policy.
(c)  As to a policy to which this chapter applies that was issued before September 1, 1995, and for which the insurer did not make the required disclosure on or before November 30, 1995, the insurer shall make the disclosure required by Subsection (a) not later than the 90th day after the date the policy lapses.
(d)  Notice is considered to comply with Subsection (b) or (c) if the notice is mailed by first class mail to the last known address of the policyholder.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 2, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 7 - Life Insurance and Annuities › Subtitle A - Life Insurance in General › Chapter 1106 - Reinstatement of Certain Life Insurance Policies › Section 1106.010. Rules

Sec. 1106.010.  RULES.  The commissioner shall adopt reasonable rules to implement this chapter, and the disclosure required by Section 1106.009 must be made in the form and manner prescribed by the commissioner after notice and hearing.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 2, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 7 - Life Insurance and Annuities › Subtitle A - Life Insurance in General › Chapter 1107 - Standard Nonforfeiture Law for Certain Annuities › Subchapter A. General Provisions › Section 1107.001. Applicability of Chapter

Sec. 1107.001.  APPLICABILITY OF CHAPTER.  (a)  This chapter applies to an annuity contract issued on or after August 29, 1979.
(b)  This chapter also applies to an annuity contract issued by a company after a date specified in a written notice:
(1)  that was filed with the State Board of Insurance after August 29, 1977, but before August 29, 1979;  and
(2)  under which the company filing the notice elected to comply before August 29, 1979, with the law codified by this chapter.
(c)  Companies shall issue, and the department shall review, annuity contracts as follows:
(1)  under Sections 1107.051-1107.054 until August 31, 2005;  or
(2)  under Sections 1107.055-1107.057 after September 1, 2003.
(d)  Companies shall not issue annuity contracts under Sections 1107.051-1107.054 after August 31, 2005.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 2, eff. June 1, 2003.  Amended by Acts 2003, 78th Leg., ch. 869, Sec. 1, eff. June 20, 2003.
2023 Texas Statutes › Insurance Code › Title 7 - Life Insurance and Annuities › Subtitle A - Life Insurance in General › Chapter 1107 - Standard Nonforfeiture Law for Certain Annuities › Subchapter A. General Provisions › Section 1107.002. Exemptions

Sec. 1107.002.  EXEMPTIONS.  (a)  This chapter does not apply to:
(1)  a reinsurance contract;
(2)  a group annuity contract that is purchased under a retirement plan or plan of deferred compensation established or maintained by an employer, including a partnership or sole proprietorship, by an employee organization, or by both, other than a plan that provides individual retirement accounts or individual retirement annuities under Section 408, Internal Revenue Code of 1986, as amended;
(3)  a premium deposit fund;
(4)  a variable annuity contract;
(5)  an investment annuity contract;
(6)  an immediate annuity contract;
(7)  a deferred annuity contract under which annuity payments have begun;
(8)  a reversionary annuity contract; or
(9)  a contingent deferred annuity contract as defined by Section 1116.003.
(b)  This chapter does not apply to a contract delivered outside this state through an agent or other representative of the company that issues the contract.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 2, eff. June 1, 2003.  Amended by Acts 2003, 78th Leg., ch. 869, Sec. 1, eff. June 20, 2003.
Amended by:
Acts 2015, 84th Leg., R.S., Ch. 375 (S.B. 1107), Sec. 1, eff. June 9, 2015.
2023 Texas Statutes › Insurance Code › Title 7 - Life Insurance and Annuities › Subtitle A - Life Insurance in General › Chapter 1107 - Standard Nonforfeiture Law for Certain Annuities › Subchapter A. General Provisions › Section 1107.003. Required Nonforfeiture Provisions

Sec. 1107.003.  REQUIRED NONFORFEITURE PROVISIONS.  (a)  An annuity contract delivered or issued for delivery in this state must contain in substance the provisions prescribed by this section or corresponding provisions that, in the opinion of the department, are at least as favorable to the contract holder when payment of considerations under the contract ceases.
(b)  The annuity contract must provide that when payment of considerations under a contract ceases, the company will grant a paid-up annuity benefit on a plan stipulated in the contract that has a value that complies with this chapter.
(c)  An annuity contract that provides for a lump-sum settlement at maturity or at any other time must provide that on surrender of the contract on or before the time annuity payments begin, the company that issues the contract shall pay a cash surrender benefit in an amount that complies with this chapter in lieu of a paid-up annuity benefit.  A company may reserve the right to defer payment of any cash surrender benefit for a period not to exceed six months after demand for payment of the benefit is made with surrender of the contract.
(d)  An annuity contract must contain:
(1)  a statement of the mortality table, if any, and interest rates to be used to compute any minimum paid-up annuity, cash surrender, or death benefits that are guaranteed under the contract, together with information that is sufficient to determine the amounts of the benefits;
(2)  a statement that any paid-up annuity, cash surrender, or death benefits available under the contract are not less than the minimum benefits required by this state;  and
(3)  an explanation of the manner in which a paid-up annuity, cash surrender, or death benefit is altered by the existence of any additional amounts credited to the contract by the company that issues the contract, any indebtedness to the company on the contract, or any prior withdrawals from or partial surrenders of the contract.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 2, eff. June 1, 2003.  Amended by Acts 2003, 78th Leg., ch. 869, Sec. 1, eff. June 20, 2003.
2023 Texas Statutes › Insurance Code › Title 7 - Life Insurance and Annuities › Subtitle A - Life Insurance in General › Chapter 1107 - Standard Nonforfeiture Law for Certain Annuities › Subchapter A. General Provisions › Section 1107.004. Optional Termination Provision

Sec. 1107.004.  OPTIONAL TERMINATION PROVISION.  (a)  Notwithstanding the requirements of Section 1107.003, an annuity contract may provide that the company has the option to terminate the contract by making a cash payment of the then present value of that portion of the paid-up annuity benefit if:
(1)  no considerations are received under the contract for two years;  and
(2)  at maturity, payments on the portion of the paid-up annuity benefit on the plan stipulated in the contract attributable to considerations paid before that period would be less than $20 each month.
(b)  If an annuity contract contains a provision permitted under Subsection (a):
(1)  the present value of a portion of a paid-up annuity benefit paid under that provision must be computed on the basis of the mortality table, if any, and interest rates specified in the contract for determining the paid-up annuity benefit;  and
(2)  a payment made under that provision relieves the company of any further obligation under the contract.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 2, eff. June 1, 2003.  Amended by Acts 2003, 78th Leg., ch. 869, Sec. 1, eff. June 20, 2003.
2023 Texas Statutes › Insurance Code › Title 7 - Life Insurance and Annuities › Subtitle A - Life Insurance in General › Chapter 1107 - Standard Nonforfeiture Law for Certain Annuities › Subchapter A. General Provisions › Section 1107.005. Contact Disclosure That Certain Benefits Not Provided

Sec. 1107.005.  CONTACT DISCLOSURE THAT CERTAIN BENEFITS NOT PROVIDED.  An annuity contract that does not provide a cash surrender benefit or that does not provide a death benefit that is at least equal to the minimum nonforfeiture amount for the contract under Subchapter B before annuity payments begin must include a statement in a prominent place in the contract that those benefits are not provided.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 2, eff. June 1, 2003.  Amended by Acts 2003, 78th Leg., ch. 869, Sec. 1, eff. June 20, 2003.
2023 Texas Statutes › Insurance Code › Title 7 - Life Insurance and Annuities › Subtitle A - Life Insurance in General › Chapter 1107 - Standard Nonforfeiture Law for Certain Annuities › Subchapter A. General Provisions › Section 1107.006. Maturity Date

Sec. 1107.006.  MATURITY DATE.  In determining the value of benefits under Sections 1107.102, 1107.103, and 1107.104, the maturity date is the latest date on which an election is permitted by the contract, but not later than the later of:
(1)  the next anniversary of the annuity contract that follows the annuitant's 70th birthday; or
(2)  the 10th anniversary of the contract.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 2, eff. June 1, 2003.  Amended by Acts 2003, 78th Leg., ch. 869, Sec. 1, eff. June 20, 2003.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 408 (H.B. 1919), Sec. 1, eff. September 1, 2009.
2023 Texas Statutes › Insurance Code › Title 7 - Life Insurance and Annuities › Subtitle A - Life Insurance in General › Chapter 1107 - Standard Nonforfeiture Law for Certain Annuities › Subchapter B. Computation of Minimum Nonforfeiture Amount › Section 1107.051. Minimum Nonforfeiture Amount

Sec. 1107.051.  MINIMUM NONFORFEITURE AMOUNT.  The minimum value under Subchapter C of a paid-up annuity, cash surrender, or death benefit shall be computed on the basis of the minimum nonforfeiture amount prescribed by this subchapter.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 2, eff. June 1, 2003.  Amended by Acts 2003, 78th Leg., ch. 869, Sec. 1, eff. June 20, 2003.