reglab/statecodes huggingface dataset:
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 1107.052. Contract With Flexible Considerations

Sec. 1107.052.  CONTRACT WITH FLEXIBLE CONSIDERATIONS.  (a)  This section applies only to an annuity contract that provides for the payment of flexible considerations.
(b)  The minimum nonforfeiture amount on or before annuity payments begin is an amount equal to the accumulation of the prescribed percentages of the amount of net considerations paid to the date of computation, which are accumulated at an interest rate of three percent per year, plus any additional amount credited to the contract by the company, less the amount of:
(1)  any withdrawal from or partial surrender of the contract made before the minimum nonforfeiture amount is computed, accumulated at an interest rate of three percent per year;  and
(2)  any indebtedness to the company on the contract, including any accrued interest due on the indebtedness.
(c)  For the purposes of this section, the amount of net consideration for a contract year may not be less than $0 and is computed by subtracting from the amount of gross considerations credited to the contract during that contract year:
(1)  an annual contract charge of $30;  and
(2)  a collection charge of $1.25 for each consideration credited to the contract during that year.
(d)  Except as provided by Subsection (e), the percentage of the amount of net consideration to be used in computing a minimum nonforfeiture amount under Subsection (b) is:
(1)  65 percent for the first contract year;  and
(2)  87.5 percent for each subsequent contract year.
(e)  For a renewal contract year, the percentage of the amount of net consideration to be used to compute a minimum nonforfeiture amount under Subsection (b) is 65 percent of the portion of the total amount of net consideration that exceeds by not more than two times the sum of those portions of the amount of net consideration in all preceding contract years for which the percentage was 65 percent.
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 B. Computation of Minimum Nonforfeiture Amount › Section 1107.053. Contract With Fixed, Scheduled Considerations

Sec. 1107.053.  CONTRACT WITH FIXED, SCHEDULED CONSIDERATIONS.  (a)  For an annuity contract that provides for the payment of fixed, scheduled considerations, the minimum nonforfeiture amount is computed in the same manner as the minimum nonforfeiture amount for an annuity contract with flexible considerations that are paid annually, except that:
(1)  the amount of net consideration for a contract year is computed using an annual contract charge equal to the lesser of:
(A)  $30;  or
(B)  10 percent of the amount of the gross annual considerations paid on the contract;  and
(2)  the percentage of the net consideration amount for the first contract year to be used to compute the minimum nonforfeiture amount is 65 percent of the amount of net consideration for the first contract year plus 22.5 percent of the amount by which the amount of net consideration for the first contract year exceeds the lesser of:
(A)  the amount of net consideration for the second contract year;  or
(B)  the amount of net consideration for the third contract year.
(b)  The computation made under Subsection (a) must assume that the considerations are paid annually in advance.
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 B. Computation of Minimum Nonforfeiture Amount › Section 1107.054. Contract With Single Consideration

Sec. 1107.054.  CONTRACT WITH SINGLE CONSIDERATION.  For an annuity contract that provides for the payment of a single consideration, the minimum nonforfeiture amount is computed in the same manner as the minimum nonforfeiture amount for a contract with flexible considerations, except that:
(1)  the net consideration amount to be used to compute the minimum nonforfeiture amount is the amount of the gross considerations paid under the contract less a contract charge of $75;  and
(2)  the percentage of the net consideration amount to be used to compute the minimum nonforfeiture amount is 90 percent.
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 B. Computation of Minimum Nonforfeiture Amount › Section 1107.055. Interest Rate

Sec. 1107.055.  INTEREST RATE.  The interest rate used in determining minimum nonforfeiture amounts shall be an annual rate of interest determined as the lesser of three percent per annum and the following, which must be specified in the contract if the interest rate will be redetermined:
(1)  the five-year Constant Maturity Treasury Rate reported by the Federal Reserve as of a date, or average over a period, rounded to the nearest 1/20th of one percent, specified in the contract no longer than 15 months prior to the contract issue date or redetermination date under Subdivision (4);
(2)  reduced by 125 basis points;
(3)  where the resulting interest rate is not less than 0.15 percent; and
(4)  the interest rate shall apply for an initial period and may be redetermined for additional periods.  The redetermination date, basis, and period, if any, shall be stated in the contract.  As used in this section, basis is the date, or average over a specified period, which produces the five-year Constant Maturity Treasury Rate to be used at each redetermination date.
Added by Acts 2003, 78th Leg., ch. 869, Sec. 1, eff. June 20, 2003.
Amended by:
Acts 2021, 87th Leg., R.S., Ch. 262 (H.B. 1777), Sec. 1, eff. September 1, 2021.
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 1107.056. Additional Interest Rate Adjustments

Sec. 1107.056.  ADDITIONAL INTEREST RATE ADJUSTMENTS.  The commissioner may adopt rules to provide for further adjustments to Section 1107.055 for annuity contracts that provide substantive participation in an equity index benefit or other benefits as appropriate.
Added 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 B. Computation of Minimum Nonforfeiture Amount › Section 1107.057. Minimum Nonforfeiture Amount

Sec. 1107.057.  MINIMUM NONFORFEITURE AMOUNT.  (a)  The minimum values as specified in Sections 1107.006 and 1107.101-1107.105 of any paid-up annuity, cash surrender, or death benefits available under an annuity contract shall be based upon minimum nonforfeiture amounts as defined in this section.
(b)  The minimum nonforfeiture amount at any time at or prior to the commencement of any annuity payments shall be equal to an accumulation up to such time at rates of interest as indicated in this subchapter of the net considerations as defined by Subsection (c) paid prior to such time, decreased by the sum of Subdivisions (1) through (4):
(1)  any withdrawal from or partial surrender of the contract made before the minimum nonforfeiture amount is computed, accumulated at an interest rate as indicated in this subchapter;
(2)  an annual contract charge of $50, accumulated at rates of interest as indicated in this subchapter;
(3)  premium tax paid, if any, by the company, and not subsequently credited back to the company, for the contract, accumulated at rates of interest as indicated in this subchapter;  and
(4)  any indebtedness to the company on the contract, including any accrued interest due on the indebtedness.
(c)  For the purposes of this section, the amount of net consideration for a contract year shall be an amount equal to 87.5 percent of the gross considerations credited to the contract during that contract year.
Added 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 C. Value of Nonforfeiture Benefits › Section 1107.101. Present Value of Nonforfeiture Benefits

Sec. 1107.101.  PRESENT VALUE OF NONFORFEITURE BENEFITS.  (a)  The present value of any paid-up annuity benefit available under an annuity contract on the date annuity payments are to begin may not be less than the minimum nonforfeiture amount for that contract on that date as computed under Subchapter B.
(b)  The present value of the paid-up annuity benefit shall be computed using the mortality table, if any, and the interest rates specified in the contract for computing the minimum paid-up annuity benefit guaranteed by 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 C. Value of Nonforfeiture Benefits › Section 1107.102. Computation of Paid-Up Annuity Benefit Under Certain Contracts

Sec. 1107.102.  COMPUTATION OF PAID-UP ANNUITY BENEFIT UNDER CERTAIN CONTRACTS.  (a)  This section applies only to an annuity contract that does not provide a cash surrender benefit.
(b)  Subject to Subsection (e), the present value of a paid-up annuity benefit available as a nonforfeiture option before the maturity date may not be less than the present value of the portion of the maturity value of the paid-up annuity benefit provided under the contract that arises from considerations paid on the contract before the date the contract is surrendered in exchange for or is changed to a deferred paid-up annuity.
(c)  The present value of a paid-up annuity benefit under Subsection (b) shall be:
(1)  computed for the period before the maturity date on the basis of the interest rate specified in the contract for accumulating the net considerations paid on the contract to determine the maturity value;  and
(2)  increased by any additional amount credited by the company to the contract.
(d)  Subject to Subsection (e), for an annuity contract that does not provide a death benefit before annuity payments begin, the present value of a paid-up annuity benefit available as a nonforfeiture option shall be computed using the interest rate and the mortality table specified in the contract for determining the maturity value of the paid-up annuity benefit.
(e)  The present value of a paid-up annuity benefit may not be less than the minimum nonforfeiture amount on the date of surrender or change.
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 C. Value of Nonforfeiture Benefits › Section 1107.103. Computation of Cash Surrender Benefit

Sec. 1107.103.  COMPUTATION OF CASH SURRENDER BENEFIT.  (a)  Subject to Subsection (c), the value of a cash surrender benefit available under an annuity contract before the maturity date may not be less than the present value on the date the contract is surrendered of the portion of the maturity value of the paid-up annuity benefit that arises from considerations paid under the contract before that date and that would be provided under the contract at maturity less an amount reflecting any withdrawals from or partial surrenders of the contract before that date and the amount of any indebtedness to the company on the contract, including accrued interest due on the indebtedness, plus any additional amount credited by the company to the contract.
(b)  The present value used to compute the minimum cash surrender benefit under Subsection (a) shall be computed using an interest rate that is not more than one percent higher than the interest rate specified in the contract for accumulating the net considerations paid on the contract to determine the maturity value.
(c)  The value of a cash surrender benefit may not be less than the minimum nonforfeiture amount on the date the contract is surrendered.
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 C. Value of Nonforfeiture Benefits › Section 1107.104. Computation of Death Benefit

Sec. 1107.104.  COMPUTATION OF DEATH BENEFIT.  The value of a death benefit available under an annuity contract that provides a cash surrender benefit may not be less than the value of the cash surrender benefit.
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 C. Value of Nonforfeiture Benefits › Section 1107.105. Computation of Benefits Available at the Time Other Than Contract Anniversary

Sec. 1107.105.  COMPUTATION OF BENEFITS AVAILABLE AT THE TIME OTHER THAN CONTRACT ANNIVERSARY.  For an annuity contract that requires payment of fixed, scheduled considerations, the value of a paid-up annuity, cash surrender, or death benefit that is available under the contract on a date other than an anniversary of the contract date shall be computed to allow for the lapse of time and any scheduled considerations paid after the beginning of the contract year in which payment of considerations under the contract ceased.
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 C. Value of Nonforfeiture Benefits › Section 1107.106. Minimum Nonforfeiture Values Under Contract That Provides Annuity and Life Insurance Benefits

Sec. 1107.106.  MINIMUM NONFORFEITURE VALUES UNDER CONTRACT THAT PROVIDES ANNUITY AND LIFE INSURANCE BENEFITS.  For a contract that provides, by rider or by supplemental provision, both annuity benefits and life insurance benefits that exceed the greater of the value of the cash surrender benefit or the amount with interest of the gross considerations paid on the contract, the minimum nonforfeiture benefits are equal to the sum of the minimum nonforfeiture benefits for the annuity portion of the contract and the minimum nonforfeiture benefits, if any, for the life insurance portion of the contract, computed as if each portion were a separate 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 C. Value of Nonforfeiture Benefits › Section 1107.107. Computations Not Affected by Additional Benefits

Sec. 1107.107.  COMPUTATIONS NOT AFFECTED BY ADDITIONAL BENEFITS.  (a)  Notwithstanding any other provision of this subchapter or Section 1107.006, a computation of a minimum nonforfeiture amount or of a paid-up annuity, cash surrender, or death benefit under this chapter may not include:
(1)  any additional benefit that is:
(A)  payable in the event of total and permanent disability;
(B)  payable as a reversionary annuity or deferred reversionary annuity benefit;  or
(C)  payable as another policy benefit in addition to life insurance, endowment, or annuity benefits;  or
(2)  the considerations paid for the additional benefit.
(b)  A paid-up benefit under an annuity contract is not required to include an additional benefit described by Subsection (a) unless the additional benefit separately requires:
(1)  a minimum nonforfeiture amount;  or
(2)  a paid-up annuity, cash surrender, or death benefit.
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 C. Value of Nonforfeiture Benefits › Section 1107.108. Rules

Sec. 1107.108.  RULES.  The commissioner may adopt rules to implement the provisions of this chapter.
Added 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 1108 - Benefits Exempt From Seizure › Subchapter A. General Provisions › Section 1108.001. Construction With Other Law

Sec. 1108.001.  CONSTRUCTION WITH OTHER LAW.  The exemptions under this chapter are in addition to the exemptions from garnishment, attachment, execution, or other seizure under Chapter 42, Property 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 1108 - Benefits Exempt From Seizure › Subchapter A. General Provisions › Section 1108.002. Annuity Contracts

Sec. 1108.002.  ANNUITY CONTRACTS.  For purposes of regulation under this code, an annuity contract is considered an insurance policy or contract if the annuity contract is issued:
(1)  by a life, health, or accident insurance company, including a mutual company or fraternal benefit society;  or
(2)  under an annuity or benefit plan used by an employer or individual.
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 1108 - Benefits Exempt From Seizure › Subchapter B. Exemptions From Seizure › Section 1108.051. Exemptions for Certain Insurance and Annuity Benefits

Sec. 1108.051.  EXEMPTIONS FOR CERTAIN INSURANCE AND ANNUITY BENEFITS.  (a)  Except as provided by Section 1108.053, this section applies to any benefits, including the cash value and proceeds of an insurance policy, to be provided to an insured or beneficiary under:
(1)  an insurance policy or annuity contract issued by a life, health, or accident insurance company, including a mutual company or fraternal benefit society;  or
(2)  an annuity or benefit plan used by an employer or individual.
(b)  Notwithstanding any other provision of this code, insurance or annuity benefits described by Subsection (a):
(1)  inure exclusively to the benefit of the person for whose use and benefit the insurance or annuity is designated in the policy or contract;  and
(2)  are fully exempt from:
(A)  garnishment, attachment, execution, or other seizure;
(B)  seizure, appropriation, or application by any legal or equitable process or by operation of law to pay a debt or other liability of an insured or of a beneficiary, either before or after the benefits are provided;  and
(C)  a demand in a bankruptcy proceeding of the insured or beneficiary.
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 1108 - Benefits Exempt From Seizure › Subchapter B. Exemptions From Seizure › Section 1108.052. Exemptions Unaffected by Beneficiary Designation

Sec. 1108.052.  EXEMPTIONS UNAFFECTED BY BENEFICIARY DESIGNATION.  The exemptions provided by Section 1108.051 apply regardless of whether:
(1)  the power to change the beneficiary is reserved to the insured; or
(2)  the insured or the insured's estate is a beneficiary.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 2, eff. June 1, 2003.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 91 (S.B. 649), Sec. 1, eff. September 1, 2013.
2023 Texas Statutes › Insurance Code › Title 7 - Life Insurance and Annuities › Subtitle A - Life Insurance in General › Chapter 1108 - Benefits Exempt From Seizure › Subchapter B. Exemptions From Seizure › Section 1108.053. Exceptions to Exemptions

Sec. 1108.053.  EXCEPTIONS TO EXEMPTIONS.  The exemptions provided by Section 1108.051 do not apply to:
(1)  a premium payment made in fraud of a creditor, subject to the applicable statute of limitations for recovering the payment;
(2)  a debt of the insured or beneficiary secured by a pledge of the insurance policy or the proceeds of the policy;  or
(3)  a child support lien or levy under Chapter 157, Family Code.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 2, eff. June 1, 2003.  Amended by Acts 2003, 78th Leg., ch. 1276, Sec. 10A.301(a), eff. Sept. 1, 2003.
2023 Texas Statutes › Insurance Code › Title 7 - Life Insurance and Annuities › Subtitle A - Life Insurance in General › Chapter 1108 - Benefits Exempt From Seizure › Subchapter C. Assignment of Benefits › Section 1108.101. Assignment Generally

Sec. 1108.101.  ASSIGNMENT GENERALLY.  (a)  This chapter does not prevent an insured, owner, or annuitant from assigning, in accordance with the terms of the policy or contract:
(1)  any benefits to be provided under an insurance policy or annuity contract to which this chapter applies; or
(2)  any other rights under the policy or contract.
(b)  A benefit or right described by Subsection (a) assigned by an insured, owner, or annuitant after a child support lien notice has been filed against the insured, owner, or annuitant by the Title IV-D agency continues to be subject to the child support lien after the date of assignment.  The lien continues to secure payment of all child support arrearages owed by the insured, owner, or annuitant under the underlying child support order, including arrearages that accrue after the date of assignment.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 2, eff. June 1, 2003.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 508 (H.B. 1674), Sec. 20, eff. September 1, 2011.
2023 Texas Statutes › Insurance Code › Title 7 - Life Insurance and Annuities › Subtitle A - Life Insurance in General › Chapter 1108 - Benefits Exempt From Seizure › Subchapter C. Assignment of Benefits › Section 1108.102. Certain Assignments Void

Sec. 1108.102.  CERTAIN ASSIGNMENTS VOID.  If an insurance policy, annuity contract, or annuity or benefit plan described by Section 1108.051 prohibits a beneficiary from assigning or commuting benefits to be provided or other rights under the policy, contract, or plan, an assignment or commutation or attempted assignment or commutation of the benefits or rights by the beneficiary is void.
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 1109 - Unclaimed Life Insurance and Annuity Contract Proceeds › Subchapter A. General Provisions › Section 1109.001. Applicability of Chapter

Sec. 1109.001.  APPLICABILITY OF CHAPTER.  (a)  This chapter applies to proceeds held and owing by a life insurance company engaged in the business of insurance in this state if:
(1)  the last known address, according to the company's records, of the person entitled to the proceeds is located in this state;  and
(2)  the proceeds have been unclaimed and unpaid for at least three years after the date, according to the company's records, that the proceeds became due and payable under a life or endowment insurance policy or annuity contract that has matured or terminated.
(b)  If a person other than the insured or annuitant is entitled to the proceeds and that person's address is not known to the company or if the identity of the person entitled to the proceeds is not certain from the company's records, it is presumed that the last known address of the person entitled to the proceeds is the same as the last known address of the insured or annuitant according to the company's records.
(c)  For purposes of Subsection (a), a life insurance policy not matured by proof of the death of the insured is considered to be matured and the proceeds of the policy are considered to be due and payable only if the policy is in force at the time the insured attained the limiting age under the mortality table on which the reserve is based.
(d)  An annuity or other obligation, the payment of which is conditioned on the continued life of any individual, is not considered due and payable for purposes of Subsection (a) without proof that the individual was alive at the time or times required by the contract.
(e)  Proceeds otherwise admittedly due and payable under a life or endowment insurance policy or annuity contract that has matured or terminated are considered to be held and owing even if the policy or contract has not been surrendered as required.
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 1109 - Unclaimed Life Insurance and Annuity Contract Proceeds › Subchapter A. General Provisions › Section 1109.002. Administration and Enforcement; Rules

Sec. 1109.002.  ADMINISTRATION AND ENFORCEMENT;  RULES.  (a)  This chapter shall be enforced in the manner provided for enforcement of Chapter 74, Property Code, under Subchapter H of that chapter.
(b)  The comptroller may adopt rules necessary to administer 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 1109 - Unclaimed Life Insurance and Annuity Contract Proceeds › Subchapter A. General Provisions › Section 1109.003. Appropriations to Administer Chapter

Sec. 1109.003.  APPROPRIATIONS TO ADMINISTER CHAPTER.  To enforce and administer this chapter, the legislature may appropriate unclaimed money received under Chapter 74, Property Code, or under any other statute requiring the delivery of unclaimed property to the comptroller.
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 1109 - Unclaimed Life Insurance and Annuity Contract Proceeds › Subchapter A. -1. Death Master File Search; Identification of Unclaimed Proceeds › Section 1109.010. Definitions

Sec. 1109.010.  DEFINITIONS.  In this subchapter:
(1)  "Annuity contract" means an annuity contract issued in this state.  The term does not include an annuity used to fund an employment-based retirement plan or program for which the insurer:
(A)  does not perform the recordkeeping services; or
(B)  is not committed by the terms of the annuity contract to pay death benefits to the beneficiaries of specific plan participants.
(2)  "Death Master File" means:
(A)  the United States Social Security Administration's Death Master File; or
(B)  any other database or service that is at least as comprehensive as the United States Social Security Administration's Death Master File for determining whether a person is dead.
(3)  "Death Master File match" means a match of the social security number or the name and date of birth of an insured or retained asset account holder resulting from a search of the Death Master File.
(4)  "Life insurance policy" means a policy or certificate of life insurance issued in this state that provides a death benefit.  The term does not include:
(A)  a policy or certificate of life insurance that provides a death benefit under an employee benefit plan that is:
(i)  subject to the Employee Retirement Income Security Act of 1974 (29 U.S.C. Section 1001 et seq.); or
(ii)  under any federal employee benefit program;
(B)  a policy or certificate of life insurance that is used to fund a pre-need funeral contract or prearrangement;
(C)  a policy or certificate of credit life or accidental death insurance; or
(D)  a policy issued to a group master policyholder for which the insurer does not provide recordkeeping services.
(5)  "Recordkeeping services" means services provided by an insurer, under an agreement with a group policy or contract holder, to obtain, maintain, and administer in the insurer's or the insurer's agents' systems the following information about each individual insured under the group policy or contract or a line of coverage under that policy or contract:
(A)  the social security number or name and date of birth of the insured;
(B)  beneficiary designation information;
(C)  coverage eligibility;
(D)  benefit amount; and
(E)  premium payment status.
(6)  "Retained asset account" means a mechanism by which the proceeds payable under a life insurance policy or annuity contract are settled by the insurer or an entity acting on behalf of the insurer by depositing the proceeds into an account with check or draft writing privileges, where those proceeds are retained by the insurer or the insurer's agent, under a supplementary contract not involving annuity contract benefits other than death benefits.
Added by Acts 2017, 85th Leg., R.S., Ch. 42 (S.B. 561), Sec. 1, eff. September 1, 2017.
2023 Texas Statutes › Insurance Code › Title 7 - Life Insurance and Annuities › Subtitle A - Life Insurance in General › Chapter 1109 - Unclaimed Life Insurance and Annuity Contract Proceeds › Subchapter A. -1. Death Master File Search; Identification of Unclaimed Proceeds › Section 1109.011. Identification of Death Master File Matches

Sec. 1109.011.  IDENTIFICATION OF DEATH MASTER FILE MATCHES.  (a)  An insurer shall compare its in-force life insurance policies, annuity contracts, and retained asset accounts against a Death Master File at least semiannually to identify potential Death Master File matches.  The insurer shall perform the first comparison of a policy, contract, or account against a full Death Master File and thereafter against Death Master File update files to identify potential Death Master File matches.
(b)  An insurer shall first conduct the comparison required by Subsection (a) electronically to the extent the insurer's records are available in electronic format, and then use the most easily accessible insurer records for any records that are not available electronically.
(c)  Each subsequent comparison made under this section shall include all in-force life insurance policies, annuity contracts, and retained asset accounts and any policies, contracts, or accounts that have lapsed since the previous comparison.
(d)  An insurer shall implement procedures for conducting comparisons under this section to account for:
(1)  common nicknames, initials used in lieu of a first or middle name, use of a middle name, compound first and middle names, and interchanged first and middle names;
(2)  compound last names, maiden or married names, and hyphens, blank spaces, or apostrophes in last names;
(3)  transposition of the month and date portions of the date of birth; and
(4)  an incomplete social security number.
Added by Acts 2017, 85th Leg., R.S., Ch. 42 (S.B. 561), Sec. 1, eff. September 1, 2017.
2023 Texas Statutes › Insurance Code › Title 7 - Life Insurance and Annuities › Subtitle A - Life Insurance in General › Chapter 1109 - Unclaimed Life Insurance and Annuity Contract Proceeds › Subchapter A. -1. Death Master File Search; Identification of Unclaimed Proceeds › Section 1109.012. Duties Regarding Death Master File Match

Sec. 1109.012.  DUTIES REGARDING DEATH MASTER FILE MATCH.  (a)  For each Death Master File match, the insurer shall, not later than the 90th day after the date the insurer identifies the match:
(1)  complete a documented good faith effort to confirm the death of the insured or retained asset account holder against other available records and information;
(2)  review the insurer's records to determine whether the deceased individual had purchased or was otherwise covered by any of the insurer's other products; and
(3)  determine whether proceeds may be due in accordance with the applicable policy or contract or terms governing the applicable account.
(b)  For group life insurance or a group annuity contract, an insurer is required to confirm the possible death of an insured or retained asset account holder under this section only if the insurer provides recordkeeping services for the group policy or group annuity contract.
(c)  If the insurer determines under Subsection (a)(3) that proceeds may be due and a beneficiary or other authorized representative has not communicated with the insurer on or before the 90th day after the date the insurer identifies a Death Master File match, the insurer shall:
(1)  complete a documented good faith effort to locate and contact each beneficiary or other authorized representative on the relevant policy, contract, or account; and
(2)  provide to the beneficiary or authorized representative the appropriate claim forms, instructions, or information to make a claim, including information about any need to provide an official death certificate or show proof of death under the applicable policy or contract or terms governing the applicable account.
(d)  If an insurer is unable to confirm the death of an insured or retained asset account holder after the insurer identifies a Death Master File match, the insurer may consider the relevant policy, contract, or account to remain in force according to its terms.
(e)  To the extent permitted by law, the insurer may disclose minimum necessary personal information about the insured, retained asset account holder, or beneficiary to a person the insurer reasonably believes may be able to assist the insurer in locating a person entitled to payment of the claim proceeds.
(f)  An insurer or the insurer's service provider may not charge an insured, retained asset account holder, beneficiary, or authorized representative any fees or costs associated with conducting a Death Master File comparison under this subchapter or verifying a Death Master File match under this subchapter.
Added by Acts 2017, 85th Leg., R.S., Ch. 42 (S.B. 561), Sec. 1, eff. September 1, 2017.
2023 Texas Statutes › Insurance Code › Title 7 - Life Insurance and Annuities › Subtitle A - Life Insurance in General › Chapter 1109 - Unclaimed Life Insurance and Annuity Contract Proceeds › Subchapter A. -1. Death Master File Search; Identification of Unclaimed Proceeds › Section 1109.013. Presumption of Unclaimed Proceeds; Report and Delivery of Proceeds

Sec. 1109.013.  PRESUMPTION OF UNCLAIMED PROCEEDS; REPORT AND DELIVERY OF PROCEEDS.  (a)  The proceeds of a life insurance policy, annuity contract, or retained asset account, and any accrued contractual interest, are first payable to each designated beneficiary or owner as provided by the applicable policy or contract or terms governing the applicable account.
(b)  If a Death Master File match is confirmed, the proceeds of the relevant policy, contract, or account are considered unclaimed proceeds for purposes of this chapter on the third anniversary of the date on which, according to the insurer's records, the insurer completed a good faith effort as required by Section 1109.012(c) that failed to locate a beneficiary or authorized representative if the proceeds remain unpaid and no beneficiary or authorized representative has submitted a claim for the proceeds to the insurer before that date.
(c)  An insurer shall report and deliver unclaimed proceeds to the comptroller as required by Chapter 74, Property Code.
(d)  Repealed by Acts 2021, 87th Leg., R.S., Ch. 52 (H.B. 1514), Sec. 18(1), eff. May 18, 2021.
(e)  For purposes of this section, unclaimed proceeds do not include any statutory interest under Section 1103.104.
Added by Acts 2017, 85th Leg., R.S., Ch. 42 (S.B. 561), Sec. 1, eff. September 1, 2017.
Amended by:
Acts 2021, 87th Leg., R.S., Ch. 52 (H.B. 1514), Sec. 2, eff. May 18, 2021.
Acts 2021, 87th Leg., R.S., Ch. 52 (H.B. 1514), Sec. 18(1), eff. May 18, 2021.
2023 Texas Statutes › Insurance Code › Title 7 - Life Insurance and Annuities › Subtitle A - Life Insurance in General › Chapter 1109 - Unclaimed Life Insurance and Annuity Contract Proceeds › Subchapter A. -1. Death Master File Search; Identification of Unclaimed Proceeds › Section 1109.014. Rulemaking Authority

Sec. 1109.014.  RULEMAKING AUTHORITY.  The commissioner may adopt rules to implement this subchapter.
Added by Acts 2017, 85th Leg., R.S., Ch. 42 (S.B. 561), Sec. 1, eff. September 1, 2017.
2023 Texas Statutes › Insurance Code › Title 7 - Life Insurance and Annuities › Subtitle A - Life Insurance in General › Chapter 1109 - Unclaimed Life Insurance and Annuity Contract Proceeds › Subchapter A. -1. Death Master File Search; Identification of Unclaimed Proceeds › Section 1109.015. Authority to Issue Certain Orders

Sec. 1109.015.  AUTHORITY TO ISSUE CERTAIN ORDERS.  The commissioner may issue an order:
(1)  limiting the Death Master File comparisons required by this subchapter to only those files the insurer maintains in searchable electronic format or approving a plan and timeline for an insurer to convert the insurer's files to searchable electronic format;
(2)  exempting an insurer from the Death Master File comparisons required by this subchapter or permitting an insurer to perform the comparisons less frequently than required by this subchapter on a showing of hardship to the insurer; or
(3)  permitting an insurer to phase in compliance with this subchapter according to a plan and timeline approved by the commissioner.
Added by Acts 2017, 85th Leg., R.S., Ch. 42 (S.B. 561), Sec. 1, eff. September 1, 2017.
2023 Texas Statutes › Insurance Code › Title 7 - Life Insurance and Annuities › Subtitle A - Life Insurance in General › Chapter 1109 - Unclaimed Life Insurance and Annuity Contract Proceeds › Subchapter A. -1. Death Master File Search; Identification of Unclaimed Proceeds › Section 1109.016. Authority to Request Death Certificate

Sec. 1109.016.  AUTHORITY TO REQUEST DEATH CERTIFICATE.  Nothing in this subchapter limits an insurer's right to request a death certificate as part of a claim validation process.
Added by Acts 2017, 85th Leg., R.S., Ch. 42 (S.B. 561), Sec. 1, eff. September 1, 2017.
2023 Texas Statutes › Insurance Code › Title 7 - Life Insurance and Annuities › Subtitle A - Life Insurance in General › Chapter 1110 - Interest Rates on Certain Policy Loans › Section 1110.001. Definitions

Sec. 1110.001.  DEFINITIONS.  In this chapter:
(1)  "Life insurance policy" includes:
(A)  a benefit certificate issued by a fraternal benefit society;  or
(B)  an annuity contract that provides for a policy loan.
(2)  "Policy loan" includes any premium loan made under a life insurance policy to pay one or more premiums not paid to the life insurer when 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 1110 - Interest Rates on Certain Policy Loans › Section 1110.002. Applicability of Chapter

Sec. 1110.002.  APPLICABILITY OF CHAPTER.  This chapter applies only to a life insurance policy issued on or after August 31, 1981.
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 1110 - Interest Rates on Certain Policy Loans › Section 1110.003. Applicability of Other Law

Sec. 1110.003.  APPLICABILITY OF OTHER LAW.  A law not included in this chapter applies to interest rates on policy loans only if that law is made specifically applicable to those rates.
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 1110 - Interest Rates on Certain Policy Loans › Section 1110.004. Maximum Interest Rate on Policy Loans

Sec. 1110.004.  MAXIMUM INTEREST RATE ON POLICY LOANS.  (a)  In this section, "published monthly average" means:
(1)  Moody's Corporate Bond Yield Average--Monthly Average Corporates as published by Moody's Investors Service, Inc., or a successor to that corporation;  or
(2)  if the rate described by Subdivision (1) is no longer published, a substantially similar average established by rule of the commissioner.
(b)  A life insurance policy must include a provision for an interest rate on a policy loan that:
(1)  does not exceed 10 percent a year;  or
(2)  is an adjustable maximum interest rate established from time to time by the life insurer as permitted by law and does not exceed the lesser of:
(A)  15 percent a year;  or
(B)  the greater of:
(i)  the published monthly average for the calendar month that ended two months before the date on which the rate is determined;  or
(ii)  the rate used to compute the cash surrender values under the life insurance policy during the applicable period plus one percent per year.
(c)  This section also applies to the interest rate charged, on reinstatement of a policy loan, for the period during and after a lapse of the life insurance 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 1110 - Interest Rates on Certain Policy Loans › Section 1110.005. Frequency of Adjustable Interest Rate Determination

Sec. 1110.005.  FREQUENCY OF ADJUSTABLE INTEREST RATE DETERMINATION.  A life insurer shall determine the adjustable interest rate under Section 1110.004(b)(2) at regular intervals at least once every 12 months but not more frequently than once in any three-month period.  At the intervals specified in the life insurance policy, the insurer:
(1)  may increase the rate charged when the interest rate determined under Section 1110.004(b)(2) would result in a rate increase of at least one-half of one percent per year;  and
(2)  shall reduce the rate charged when the interest rate determined under Section 1110.004(b)(2) would result in a rate decrease of at least one-half of one percent per year.
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 1110 - Interest Rates on Certain Policy Loans › Section 1110.006. Information to Be Included in Policy

Sec. 1110.006.  INFORMATION TO BE INCLUDED IN POLICY.  (a)  A life insurance policy must include the substance of the provisions of Section 1110.004(b) that are applicable to the policy.
(b)  A life insurance policy that provides for an adjustable interest rate under Section 1110.004(b)(2) must state the frequency at which the rate is to be 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 1110 - Interest Rates on Certain Policy Loans › Section 1110.007. Notice to Policyholder

Sec. 1110.007.  NOTICE TO POLICYHOLDER.  (a)  In this section, "policyholder" includes the owner of a life insurance policy or the person designated to pay premiums as shown on the records of the life insurer.
(b)  For a cash loan on a life insurance policy, the life insurer shall notify the policyholder of the initial interest rate on the loan at the time the insurer makes the loan.
(c)  For a premium loan on a life insurance policy, the life insurer shall notify the policyholder of the initial interest rate on the loan as soon as reasonably practical after making the loan.  Except as provided by Subsection (d), subsequent notice is not required to be given when the insurer makes an additional premium loan on the policy.
(d)  At least 30 days before an increase in the interest rate on a policy loan, the life insurer shall send a notice of the rate increase to the policyholder.
(e)  The life insurer shall include in a notice required by this section the substance of the provisions of Section 1110.004(b) applicable to the policy.  For a policy loan with an adjustable interest rate, the notice must state the frequency at which the rate is to be 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 1110 - Interest Rates on Certain Policy Loans › Section 1110.008. Loan Value of Policy; Termination of Policy Based on Change in Interest Rate

Sec. 1110.008.  LOAN VALUE OF POLICY;  TERMINATION OF POLICY BASED ON CHANGE IN INTEREST RATE.  (a)  The loan value of a life insurance policy shall be determined in accordance with Section 1101.009.
(b)  A life insurance policy may not be terminated in a policy year solely as the result of a change in the policy loan interest rate during that policy year, and the life insurer shall maintain coverage during that policy year until the time at which coverage would otherwise have terminated if there had been no change in the interest rate.
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 1111 - Accelerated Term Life Insurance Benefits › Subchapter B. Accelerated Term Life Insurance Benefits › Section 1111.051. Definitions

Sec. 1111.051.  DEFINITIONS.  In this subchapter:
(1)  "Accelerated benefit" means a benefit paid to an insured instead of a portion of a death benefit.
(2)  "Death benefit" means a benefit payable to a beneficiary on the death of an insured.
(3)  "Long-term care illness" means an illness or physical condition that results in the inability to perform the activities of daily life or the substantial and material duties of any occupation.
(4)  "Terminal illness" means an illness or physical condition, including a physical injury, that can reasonably be expected to result in death within not more than two years.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 2, eff. June 1, 2003.