reglab/statecodes huggingface dataset:
2023 Texas Statutes › Insurance Code › Title 7 - Life Insurance and Annuities › Subtitle C - Specialized Coverages › Chapter 1152 - Separate Accounts, Variable Contracts, and Related Products › Subchapter C. Variable Contracts › Section 1152.105. Waiver of Hearing Requirement

Sec. 1152.105.  WAIVER OF HEARING REQUIREMENT.  (a)  If a company, its parent, or a commonly controlled affiliate is an authorized life insurance company, the company may apply to the commissioner for a waiver of the hearing requirements under Section 1152.102 or 1152.104.
(b)  The commissioner may waive the hearing requirement if the commissioner determines that a hearing is not necessary to find the company qualified under 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 C - Specialized Coverages › Chapter 1152 - Separate Accounts, Variable Contracts, and Related Products › Subchapter C. Variable Contracts › Section 1152.106. Reserve Liability for Variable Contract

Sec. 1152.106.  RESERVE LIABILITY FOR VARIABLE CONTRACT.  The reserve liability for a variable contract must be established under actuarial procedures that recognize:
(1)  the variable nature of the benefits provided;  and
(2)  any mortality guarantees.
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 C - Specialized Coverages › Chapter 1152 - Separate Accounts, Variable Contracts, and Related Products › Subchapter C. Variable Contracts › Section 1152.107. Separate Annual Statement Required

Sec. 1152.107.  SEPARATE ANNUAL STATEMENT REQUIRED.  (a)  An insurance company authorized under this subchapter to issue, deliver, or use a variable annuity contract or variable life contract shall file with the department a separate annual statement of its separate variable contract accounts.
(b)  The company shall file the statement:
(1)  on a form prescribed or approved by the department;  and
(2)  simultaneously with the annual statement required by Sections 841.255 and 882.003.
(c)  The statement must:
(1)  include details as to all income, disbursements, assets, and liability items associated with the separate variable contract accounts;  and
(2)  be under oath of two company officers.
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 C - Specialized Coverages › Chapter 1152 - Separate Accounts, Variable Contracts, and Related Products › Subchapter C. Variable Contracts › Section 1152.108. Grace, Reinstatement, and Nonforfeiture Provisions Required

Sec. 1152.108.  GRACE, REINSTATEMENT, AND NONFORFEITURE PROVISIONS REQUIRED.  (a)  An individual variable life insurance or individual variable annuity contract delivered or issued for delivery in this state must contain grace, reinstatement, and nonforfeiture provisions appropriate to the contract.
(b)  A group variable contract delivered or issued for delivery in this state must contain a grace period provision appropriate to the contract.
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 C - Specialized Coverages › Chapter 1152 - Separate Accounts, Variable Contracts, and Related Products › Subchapter C. Variable Contracts › Section 1152.109. Variable Benefits Provisions

Sec. 1152.109.  VARIABLE BENEFITS PROVISIONS.  (a)  A contract providing benefits payable in variable amounts that is delivered or issued for delivery in this state must state the essential features of the procedures the insurance company will follow in determining the dollar amount of the variable benefits.
(b)  A contract under which the benefits vary to reflect investment experience, including a group contract and any certificate in evidence of variable benefits issued under that group contract, must state:
(1)  on its first page, that the benefits under the contract are on a variable basis;  and
(2)  that the dollar amount will vary.
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 C - Specialized Coverages › Chapter 1152 - Separate Accounts, Variable Contracts, and Related Products › Subchapter C. Variable Contracts › Section 1152.110. Private Placement Contracts

Sec. 1152.110.  PRIVATE PLACEMENT CONTRACTS.  (a)  In this section, "private placement contract" means a variable annuity contract or variable life insurance policy that is:
(1)  issued exclusively to an accredited investor or qualified purchaser, as those terms are defined by the Securities Act of 1933 (15 U.S.C. Section 77a et seq.), the Investment Company Act of 1940 (15 U.S.C. Section 80a-1 et seq.), or the regulations promulgated under either of those acts; and
(2)  offered for sale and sold in a transaction that is exempt from registration under the Securities Act of 1933 (15 U.S.C. Section 77a et seq.).
(b)  A private placement contract may provide that the insurer issuing the contract may defer payments or advances for loans, cash surrender values, or death benefits until the separate account assets, or any portion of the separate account assets, comprising rights to loans, cash surrender values, or death benefits can be converted to cash under any applicable terms.
(c)  Section 1103.104 does not apply to the computation of the interest on the proceeds of a private placement contract.
Added by Acts 2007, 80th Leg., R.S., Ch. 737 (H.B. 2765), Sec. 1, eff. September 1, 2007.
2023 Texas Statutes › Insurance Code › Title 7 - Life Insurance and Annuities › Subtitle C - Specialized Coverages › Chapter 1152 - Separate Accounts, Variable Contracts, and Related Products › Subchapter D. Variable Contract Agents › Section 1152.151. Agent's License Required

Sec. 1152.151.  AGENT'S LICENSE REQUIRED.  (a)  A person may not sell or offer for sale in this state a variable contract, or act to negotiate, make, or consummate a variable contract for another, unless the department has licensed the person under Chapter 4054 as a general life, accident, and health agent or a life agent.
(b)  The licensing and regulation of a person acting as a variable contract agent is subject to the same provisions applicable to the licensing and regulation of other agents under Title 13.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 2, eff. June 1, 2003.  Amended by Acts 2003, 78th Leg., ch. 1276, Sec. 10A.303(b), eff. Sept. 1, 2003.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 548 (S.B. 1263), Sec. 2.11, eff. September 1, 2007.
Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 2F.009, eff. April 1, 2009.
2023 Texas Statutes › Insurance Code › Title 7 - Life Insurance and Annuities › Subtitle C - Specialized Coverages › Chapter 1152 - Separate Accounts, Variable Contracts, and Related Products › Subchapter E. Modified Guaranteed Contracts › Section 1152.201. Definition

Sec. 1152.201.  DEFINITION.  In this subchapter, "modified guaranteed contract" means an individual life insurance policy or deferred annuity contract as to which:
(1)  the underlying assets are held in a separate account;  and
(2)  the values are guaranteed if the policy or contract is held for 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 C - Specialized Coverages › Chapter 1152 - Separate Accounts, Variable Contracts, and Related Products › Subchapter E. Modified Guaranteed Contracts › Section 1152.202. Applicability of Laws Governing Life Insurance Companies

Sec. 1152.202.  APPLICABILITY OF LAWS GOVERNING LIFE INSURANCE COMPANIES.  Unless otherwise approved by the commissioner, the laws of this state governing the investments of life insurance companies apply to an asset held in a separate account that relates to a modified guaranteed contract that provides for nonforfeiture values that may vary based on a market-value adjustment formula.
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 C - Specialized Coverages › Chapter 1152 - Separate Accounts, Variable Contracts, and Related Products › Subchapter E. Modified Guaranteed Contracts › Section 1152.203. Rules

Sec. 1152.203.  RULES.  In addition to any rules adopted under Section 1152.002, the commissioner may adopt reasonable rules that apply only to a modified guaranteed contract, to appropriately regulate:
(1)  a modified guaranteed contract under this chapter;  and
(2)  the separate account maintained in relation to a modified guaranteed contract.
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 C - Specialized Coverages › Chapter 1152 - Separate Accounts, Variable Contracts, and Related Products › Subchapter E. Modified Guaranteed Contracts › Section 1152.204. Nonforfeiture Values

Sec. 1152.204.  NONFORFEITURE VALUES.  (a)  A modified guaranteed contract must contain nonforfeiture values that are based on a market-value adjustment formula if the contract is held for a period shorter than the period specified in the contract.  The formula may or may not reflect the value of assets held in the separate account.
(b)  A modified guaranteed contract must prominently state on its first page that the nonforfeiture values may increase or decrease based on the market-value formula specified in the contract.
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 C - Specialized Coverages › Chapter 1152 - Separate Accounts, Variable Contracts, and Related Products › Subchapter E. Modified Guaranteed Contracts › Section 1152.205. Separate Account Statement

Sec. 1152.205.  SEPARATE ACCOUNT STATEMENT.  An insurance company that files a separate account statement under Section 1152.107 shall include in that statement a statement for each separate account that relates to a modified guaranteed contract.
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 C - Specialized Coverages › Chapter 1153 - Credit Life Insurance and Credit Accident and Health Insurance › Subchapter A. General Provisions › Section 1153.001. Short Title

Sec. 1153.001.  SHORT TITLE.  This chapter may be cited as the Act for the Regulation of Credit Life Insurance and Credit Accident and Health 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 C - Specialized Coverages › Chapter 1153 - Credit Life Insurance and Credit Accident and Health Insurance › Subchapter A. General Provisions › Section 1153.002. Purpose; Legislative Intent; Construction

Sec. 1153.002.  PURPOSE;  LEGISLATIVE INTENT;  CONSTRUCTION.  (a)  The purpose of this chapter is to promote the public welfare by regulating credit life insurance and credit accident and health insurance.
(b)  This chapter is not intended to prohibit or discourage reasonable competition.
(c)  This chapter shall be liberally construed.
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 C - Specialized Coverages › Chapter 1153 - Credit Life Insurance and Credit Accident and Health Insurance › Subchapter A. General Provisions › Section 1153.003. Definitions

Sec. 1153.003.  DEFINITIONS.  In this chapter:
(1)  "Credit accident and health insurance" means insurance to provide indemnity for payments that become due on a specific credit transaction of a debtor when the debtor is disabled, as defined in the insurance policy.
(2)  "Credit life insurance" means insurance on the life of a debtor in connection with a specific credit transaction.
(3)  "Credit transaction" includes the lending of money.
(4)  "Creditor" means:
(A)  a person who lends money or who sells or leases goods, services, property, rights, or privileges, for which the payment is arranged through a credit transaction;
(B)  a successor to the right, title, or interest of a person described by Paragraph (A);  or
(C)  a person who is in any way associated with a person described by Paragraph (A) or (B), including a director, officer, employee, affiliate, associate, or subsidiary of the person described by Paragraph (A) or (B).
(5)  "Debtor" means a person who borrows money or who purchases or leases goods, services, property, rights, or privileges, the payment for which is arranged through a credit transaction.
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 C - Specialized Coverages › Chapter 1153 - Credit Life Insurance and Credit Accident and Health Insurance › Subchapter A. General Provisions › Section 1153.004. Applicability of Chapter

Sec. 1153.004.  APPLICABILITY OF CHAPTER.  (a)  This chapter applies to life insurance and accident and health insurance that is sold in connection with a credit transaction that is charged to or paid for by, in whole or part, the debtor, except insurance that is issued or sold:
(1)  in connection with a credit transaction of more than 10 years' duration;
(2)  in connection with a credit transaction that is:
(A)  secured by a first mortgage or deed of trust;  and
(B)  made to:
(i)  finance the purchase of commercial real property or the construction of or improvement to a building, other than a single-family dwelling, on the real property if the purchase, construction, or improvement is secured by a lien on the real property;  or
(ii)  refinance a credit transaction made for a purpose described by Subparagraph (i);  or
(3)  as an isolated transaction on the part of the insurer that is not related to an agreement or a plan for insuring debtors of the creditor.
(b)  This chapter applies to insurance described by Subsection (a) regardless of the nature, kind, or plan of the credit insurance coverage or premium payment system and regardless of whether the credit insurance is charged to or paid for by the debtor directly or indirectly.
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 C - Specialized Coverages › Chapter 1153 - Credit Life Insurance and Credit Accident and Health Insurance › Subchapter A. General Provisions › Section 1153.005. Rules

Sec. 1153.005.  RULES.  After notice and a hearing, the commissioner may adopt rules to implement 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 C - Specialized Coverages › Chapter 1153 - Credit Life Insurance and Credit Accident and Health Insurance › Subchapter A. General Provisions › Section 1153.006. Filing Fee

Sec. 1153.006.  FILING FEE.  (a)  The department shall set and collect a fee for a form or schedule filed under this chapter in an amount not to exceed $200.
(b)  Fees collected under this section shall be deposited in the Texas Department of Insurance operating account.
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 C - Specialized Coverages › Chapter 1153 - Credit Life Insurance and Credit Accident and Health Insurance › Subchapter A. General Provisions › Section 1153.007. Gain or Advantage From Insurance Not Prohibited Charge

Sec. 1153.007.  GAIN OR ADVANTAGE FROM INSURANCE NOT PROHIBITED CHARGE.  (a)  The premium or cost of credit life insurance or credit accident and health insurance authorized under this chapter is not considered to be interest, a charge, consideration, or an amount in excess of permitted charges in connection with the underlying credit transaction.
(b)  Any benefit, return, or other gain or advantage to the creditor arising out of the sale or provision of the insurance under this chapter is not a violation of any law of 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 C - Specialized Coverages › Chapter 1153 - Credit Life Insurance and Credit Accident and Health Insurance › Subchapter B. Forms › Section 1153.051. Filing of Form

Sec. 1153.051.  FILING OF FORM.  (a)  An insurer shall file with the commissioner the form of each policy, certificate of insurance, notice of proposed insurance, application for insurance, endorsement, and rider to which this chapter applies that is delivered or issued for delivery in this state.
(b)  If a group policy of credit life insurance or credit accident and health insurance is delivered in another state, the insurer is required to file only the group certificate and notice of proposed insurance delivered or issued for delivery in this state, as specified in Section 1153.052.
(c)  The commissioner shall approve a certificate filed under Subsection (b) if it conforms with the requirements provided by Section 1153.052 and if the schedule of premium rates applicable to the insurance evidenced by that certificate or notice does not exceed the presumptive premium rate established by the commissioner.
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 C - Specialized Coverages › Chapter 1153 - Credit Life Insurance and Credit Accident and Health Insurance › Subchapter B. Forms › Section 1153.052. Requirements Relating to Insurance Policy or Certificate

Sec. 1153.052.  REQUIREMENTS RELATING TO INSURANCE POLICY OR CERTIFICATE.  (a)  A policy or certificate of credit life insurance or credit accident and health insurance must:
(1)  specify:
(A)  the name and home office address of the insurer;
(B)  the name of each debtor;
(C)  in the case of a certificate under a group policy, the identity, by name or otherwise, of each insured;
(D)  the full amount of premium or the total identifiable insurance charge, if any, to the debtor, separately for credit life insurance and credit accident and health insurance;  and
(E)  each exception or limitation to or restriction on the coverage;
(2)  describe the coverage, including the amount and term of the coverage;  and
(3)  state that the benefits are to be paid to the creditor to reduce or extinguish the unpaid amount of the debt and that any amount of benefits that exceeds the unpaid debt is to be paid to a beneficiary, other than the creditor, named by the debtor or to the debtor's estate.
(b)  The requirements of this section are in addition to the other requirements of law.
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 C - Specialized Coverages › Chapter 1153 - Credit Life Insurance and Credit Accident and Health Insurance › Subchapter B. Forms › Section 1153.053. Disapproval of Form

Sec. 1153.053.  DISAPPROVAL OF FORM.  (a)  Not later than the 60th day after the date an insurer files a form under Section 1153.051, the commissioner shall disapprove the form if:
(1)  the benefits provided are not reasonable in relation to the premium charge;  or
(2)  the form contains a provision that:
(A)  is unjust, unfair, inequitable, misleading, or deceptive;
(B)  encourages misrepresentation of the coverage;  or
(C)  is contrary to this code or a rule adopted under this code.
(b)  The commissioner shall specify in the notice of disapproval of a form the reason for the disapproval and state that, if the insurer delivers to the commissioner a written request for a hearing on the disapproval of the form, the hearing will be granted not later than the 20th day after the date of the request.
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 C - Specialized Coverages › Chapter 1153 - Credit Life Insurance and Credit Accident and Health Insurance › Subchapter B. Forms › Section 1153.054. Withdrawal of Approval of Form

Sec. 1153.054.  WITHDRAWAL OF APPROVAL OF FORM.  The commissioner may hold a hearing on the withdrawal of the approval of a form not earlier than the 21st day after the date written notice of the hearing is given to the insurer who submitted the form.  The notice of the hearing must state the reason for the proposed withdrawal of approval.  At any time after the hearing, the commissioner may withdraw approval of the form for any ground provided by Section 1153.053(a).
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 C - Specialized Coverages › Chapter 1153 - Credit Life Insurance and Credit Accident and Health Insurance › Subchapter B. Forms › Section 1153.055. Prohibitions Relating to Issuance or Use of Form

Sec. 1153.055.  PROHIBITIONS RELATING TO ISSUANCE OR USE OF FORM.  (a)  A policy, certificate of insurance, notice of proposed insurance, application for insurance, endorsement, or rider to which this chapter applies may not be issued or used before the 61st day after the date the form is filed with the commissioner under Section 1153.051, unless the commissioner gives prior written approval of the issuance or use of the form.
(b)  An insurer who is notified by the commissioner that a form is disapproved may not issue or use that form.
(c)  After the effective date of the withdrawal of the approval of a form under Section 1153.054, the insurer may not issue or use that 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 C - Specialized Coverages › Chapter 1153 - Credit Life Insurance and Credit Accident and Health Insurance › Subchapter C. Rates › Section 1153.101. Filing of Schedule of Rates

Sec. 1153.101.  FILING OF SCHEDULE OF RATES.  An insurer shall file with the commissioner each schedule of premium rates relating to a document required to be filed under Section 1153.051.
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 C - Specialized Coverages › Chapter 1153 - Credit Life Insurance and Credit Accident and Health Insurance › Subchapter C. Rates › Section 1153.102. Revision of Schedule of Rates

Sec. 1153.102.  REVISION OF SCHEDULE OF RATES.  (a)  An insurer may revise its schedules of premium rates for various classes of business.
(b)  The insurer shall file the revised schedules and classes of business with the commissioner.
(c)  An insurer may not issue a credit life insurance policy or credit accident and health insurance policy for which the premium rate exceeds the rate determined by using the appropriate schedule for that class of business that the insurer has on file with the commissioner.
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 C - Specialized Coverages › Chapter 1153 - Credit Life Insurance and Credit Accident and Health Insurance › Subchapter C. Rates › Section 1153.103. Presumptive Premium Rate

Sec. 1153.103.  PRESUMPTIVE PREMIUM RATE.  (a)  After notice and a hearing, the commissioner by rule may adopt a presumptive premium rate for various classes of business and terms of coverage.  An insurer that does not file a different rate under Section 1153.105 or 1153.106 shall file the presumptive rate adopted by the commissioner.
(b)  Except as provided by this chapter, any hearing conducted or order adopting a presumptive rate under this subchapter shall be held in accordance with the rulemaking provisions of Chapter 2001, Government Code.
(c)  In the commissioner's order adopting a presumptive rate, the commissioner shall set forth findings and conclusions on all material issues presented at the hearing.
(d)  In determining the presumptive premium rate, the commissioner shall consider any relevant data, including reasonable acquisition costs, loss ratios, administrative expenses, reserves, loss settlement expenses, the type or class of business, the duration of various credit transactions, and reasonable and adequate profits to the insurers.
(e)  In determining the presumptive premium rate, the commissioner may not set or limit the amount of compensation actually paid by a company to an agent but may request from an insurer or agent any relevant data relating to the presumptive premium rate, including information relating to compensation paid for the sale of credit insurance, expenses, losses, and profits.  An insurer or agent shall provide the requested information to the commissioner in a timely manner.
(f)  The commissioner may not adopt a presumptive premium rate that is unjust, unreasonable, inadequate, confiscatory, or excessive to the insureds, the insurers, or the agents.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 2, eff. June 1, 2003.  Amended by Acts 2003, 78th Leg., ch. 1276, Sec. 10A.304(a), eff. Sept. 1, 2003.
2023 Texas Statutes › Insurance Code › Title 7 - Life Insurance and Annuities › Subtitle C - Specialized Coverages › Chapter 1153 - Credit Life Insurance and Credit Accident and Health Insurance › Subchapter C. Rates › Section 1153.104. Appeal of Presumptive Rate

Sec. 1153.104.  APPEAL OF PRESUMPTIVE RATE.  Any person who is aggrieved by any action of the commissioner taken in the setting of a presumptive rate may, not later than the 30th day after the date the commissioner adopts a presumptive rate order, file a petition for judicial review in a district court in Travis County.  Judicial review under this section is governed by Subchapter B, Chapter 2001, Government 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.304(a), eff. Sept. 1, 2003.
2023 Texas Statutes › Insurance Code › Title 7 - Life Insurance and Annuities › Subtitle C - Specialized Coverages › Chapter 1153 - Credit Life Insurance and Credit Accident and Health Insurance › Subchapter C. Rates › Section 1153.105. Rate Within Certain Percentages of Presumptive Rate

Sec. 1153.105.  RATE WITHIN CERTAIN PERCENTAGES OF PRESUMPTIVE RATE.  (a)  An insurer electing to deviate from the presumptive rate shall file with the commissioner the insurer's proposed rate for credit life and credit accident and health insurance.
(b)  On filing the rate with the commissioner, the insurer may use the filed rate until the insurer elects to file a different rate.
(c)  Except as provided by Section 1153.106, an insurer may not use a rate that is more than 30 percent higher or more than 30 percent lower than the presumptive rate.
(d)  Except as provided by this subchapter, a rate that complies with this section is valid and in compliance with the requirements of this subchapter and other applicable law.
Added by Acts 2003, 78th Leg., ch. 1276, Sec. 10A.304(b), eff. Sept. 1, 2003.
2023 Texas Statutes › Insurance Code › Title 7 - Life Insurance and Annuities › Subtitle C - Specialized Coverages › Chapter 1153 - Credit Life Insurance and Credit Accident and Health Insurance › Subchapter C. Rates › Section 1153.106. Rate Outside Certain Percentages of Presumptive Rate

Sec. 1153.106.  RATE OUTSIDE CERTAIN PERCENTAGES OF PRESUMPTIVE RATE.  (a)  An insurer may file with the commissioner a proposed rate for credit life and credit accident and health insurance that is more than 30 percent higher or more than 30 percent lower than the presumptive rate adopted by the commissioner under this subchapter.
(b)  The commissioner may disapprove a rate filed under this section on the ground that the rate is not actuarially justified.
(c)  A rate filed under this section is considered approved and the insurer may use the rate if the rate is not disapproved by the commissioner before the 60th day after the date the insurer filed the rate.
(d)  A hearing under this section is a contested case hearing conducted under Chapter 2001, Government Code.  Judicial review of any action of the commissioner under this section is governed by Subchapter D, Chapter 36.
Added by Acts 2003, 78th Leg., ch. 1276, Sec. 10A.304(b), eff. Sept. 1, 2003.
2023 Texas Statutes › Insurance Code › Title 7 - Life Insurance and Annuities › Subtitle C - Specialized Coverages › Chapter 1153 - Credit Life Insurance and Credit Accident and Health Insurance › Subchapter C. Rates › Section 1153.107. Rate Standard

Sec. 1153.107.  RATE STANDARD.  (a)  A rate filed under this subchapter is not excessive unless the rate is unreasonably high for the coverage provided and a reasonable degree of competition does not exist with respect to the classification to which the rate is applicable.
(b)  A rate filed under this subchapter is not inadequate unless the rate is insufficient to sustain projected losses and expenses or the rate substantially impairs, or is likely to substantially impair, competition with respect to the sale of the product.
Added by Acts 2003, 78th Leg., ch. 1276, Sec. 10A.304(b), eff. Sept. 1, 2003.
2023 Texas Statutes › Insurance Code › Title 7 - Life Insurance and Annuities › Subtitle C - Specialized Coverages › Chapter 1153 - Credit Life Insurance and Credit Accident and Health Insurance › Subchapter D. Credit Insurance Requirements › Section 1153.151. Forms of Credit Life Insurance

Sec. 1153.151.  FORMS OF CREDIT LIFE INSURANCE.  Credit life insurance may be issued only as:
(1)  an individual policy of life insurance issued to a debtor on a term plan;  or
(2)  a group policy of life insurance issued to a creditor on a term plan providing insurance on the lives of debtors.
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 C - Specialized Coverages › Chapter 1153 - Credit Life Insurance and Credit Accident and Health Insurance › Subchapter D. Credit Insurance Requirements › Section 1153.152. Forms of Credit Accident and Health Insurance

Sec. 1153.152.  FORMS OF CREDIT ACCIDENT AND HEALTH INSURANCE.  Credit accident and health insurance may be issued only as:
(1)  an individual policy of accident and health insurance issued to a debtor on a term plan;
(2)  a disability benefit provision in an individual policy of credit life insurance;
(3)  a group policy of accident and health insurance issued to a creditor on a term plan insuring debtors;  or
(4)  a disability benefit provision in a group policy of credit 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 C - Specialized Coverages › Chapter 1153 - Credit Life Insurance and Credit Accident and Health Insurance › Subchapter D. Credit Insurance Requirements › Section 1153.153. Evidence of Insurance

Sec. 1153.153.  EVIDENCE OF INSURANCE.  Credit life insurance or credit accident and health insurance shall be evidenced by an individual policy or group certificate of 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 C - Specialized Coverages › Chapter 1153 - Credit Life Insurance and Credit Accident and Health Insurance › Subchapter D. Credit Insurance Requirements › Section 1153.154. Requirements for Delivery or Issuance of Credit Insurance Policy

Sec. 1153.154.  REQUIREMENTS FOR DELIVERY OR ISSUANCE OF CREDIT INSURANCE POLICY.  A policy of credit life insurance or credit accident and health insurance that is delivered or issued for delivery in this state may be delivered or issued for delivery only by an insurer authorized to engage in the business of insurance in this state and may be issued only through a holder of a license issued by the commissioner.
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 C - Specialized Coverages › Chapter 1153 - Credit Life Insurance and Credit Accident and Health Insurance › Subchapter D. Credit Insurance Requirements › Section 1153.155. Limits on Amount of Credit Life Insurance

Sec. 1153.155.  LIMITS ON AMOUNT OF CREDIT LIFE INSURANCE.  (a)  The initial amount of credit life insurance on a debtor may not exceed the total amount of debt repayable under the contract that evidences the credit transaction.
(b)  If the debt is repayable in substantially equal installments, the amount of insurance may not at any time exceed the greater of the scheduled or actual unpaid amount of the debt under the contract.
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 C - Specialized Coverages › Chapter 1153 - Credit Life Insurance and Credit Accident and Health Insurance › Subchapter D. Credit Insurance Requirements › Section 1153.156. Limits on Amount of Credit Accident and Health Insurance

Sec. 1153.156.  LIMITS ON AMOUNT OF CREDIT ACCIDENT AND HEALTH INSURANCE.  (a)  The total amount of indemnity payable by credit accident and health insurance may not exceed the total amount of debt repayable under the contract that evidences the credit transaction.
(b)  The amount of a periodic indemnity payment may not exceed the scheduled periodic installment payment on the debt.
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 C - Specialized Coverages › Chapter 1153 - Credit Life Insurance and Credit Accident and Health Insurance › Subchapter D. Credit Insurance Requirements › Section 1153.157. Beginning of Term of Credit Insurance Coverage

Sec. 1153.157.  BEGINNING OF TERM OF CREDIT INSURANCE COVERAGE.  (a)  Except as otherwise provided by this section, the term of credit life insurance or credit accident and health insurance begins, subject to acceptance by the insurer, on the date that the debtor becomes obligated to the creditor.
(b)  With respect to an obligation that exists when a group policy takes effect, coverage begins on the later of the effective date of the policy or the date of enrollment for coverage under the policy.
(c)  If evidence of insurability is required and is provided after the 30th day after the date the debtor becomes obligated to the creditor, the term of the insurance may begin on the date the insurance company determines that the evidence is satisfactory.
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 C - Specialized Coverages › Chapter 1153 - Credit Life Insurance and Credit Accident and Health Insurance › Subchapter D. Credit Insurance Requirements › Section 1153.158. Delivery of Evidence of Insurance to Debtor

Sec. 1153.158.  DELIVERY OF EVIDENCE OF INSURANCE TO DEBTOR.  (a)  At the time a debt for which credit insurance is sold is incurred:
(1)  the individual policy or group certificate of insurance, as appropriate, shall be delivered to the debtor;  or
(2)  a copy of the application for the policy or certificate of insurance or a notice of proposed insurance that satisfies Section 1153.159 shall be delivered to the debtor.
(b)  If delivery to the debtor is made under Subsection (a)(2), the insurer shall deliver the individual policy or group certificate of insurance to the debtor on acceptance of the insurance by the insurer and not later than the 45th day after the date the debt is incurred.
(c)  If the insurer named in the application or notice under Subsection (a)(2) does not accept the risk, the debtor shall receive a policy or certificate of insurance that specifies the name and home office address of the substituted insurer and the amount of the premium to be charged for the 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 C - Specialized Coverages › Chapter 1153 - Credit Life Insurance and Credit Accident and Health Insurance › Subchapter D. Credit Insurance Requirements › Section 1153.159. Requirements Relating to Application for Insurance or Notice of Proposed Insurance

Sec. 1153.159.  REQUIREMENTS RELATING TO APPLICATION FOR INSURANCE OR NOTICE OF PROPOSED INSURANCE.  A copy of an application for insurance or a notice of proposed insurance delivered under Section 1153.158 must:
(1)  be signed by the debtor;
(2)  specify:
(A)  the name and home office address of the insurer;
(B)  the name of each debtor;
(C)  the full amount of the premium or the total identifiable insurance charge, if any, to be paid by the debtor, separately for credit life insurance and credit accident and health insurance;  and
(D)  the amount, term, and a brief description of the coverage to be provided;
(3)  refer exclusively to insurance coverage;
(4)  be separate from the instrument or agreement for the loan or sale or other credit statement of account, unless the information required by this section is prominently set forth in that instrument, agreement, or statement;  and
(5)  provide that on acceptance by the insurer, the insurance becomes effective as provided by Section 1153.157.
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 C - Specialized Coverages › Chapter 1153 - Credit Life Insurance and Credit Accident and Health Insurance › Subchapter D. Credit Insurance Requirements › Section 1153.160. Termination of Credit Insurance

Sec. 1153.160.  TERMINATION OF CREDIT INSURANCE.  (a)  The term of credit life insurance or credit accident and health insurance must end not later than the 15th day after the scheduled maturity date of the debt unless the coverage after that date is without additional cost to the debtor.
(b)  If the debt is discharged by renewing or refinancing the debt before the scheduled maturity date, the insurance in force must terminate before new insurance may be issued in connection with the renewed or refinanced debt.
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 C - Specialized Coverages › Chapter 1153 - Credit Life Insurance and Credit Accident and Health Insurance › Subchapter D. Credit Insurance Requirements › Section 1153.161. Insurance May Be Provided by Debtor

Sec. 1153.161.  INSURANCE MAY BE PROVIDED BY DEBTOR.  If credit life insurance or credit accident and health insurance is required as additional security for a debt, the debtor, on request to the creditor, may provide the required amount of insurance through:
(1)  an existing insurance policy owned or controlled by the debtor;  or
(2)  an insurance policy obtained from an insurer authorized to engage in the business of insurance 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 C - Specialized Coverages › Chapter 1153 - Credit Life Insurance and Credit Accident and Health Insurance › Subchapter E. Charges, Refunds, Adjustments, and Claims › Section 1153.201. Maximum Amount of Insurance Charge to Debtor

Sec. 1153.201.  MAXIMUM AMOUNT OF INSURANCE CHARGE TO DEBTOR.  A creditor may not charge a debtor for credit life or credit accident and health insurance issued to the debtor an amount that exceeds the amount of the premium that the insurer charges the creditor for that insurance, as computed at the time the charge to the debtor 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 C - Specialized Coverages › Chapter 1153 - Credit Life Insurance and Credit Accident and Health Insurance › Subchapter E. Charges, Refunds, Adjustments, and Claims › Section 1153.202. Refund of Insurance Charge on Termination of Debt or Insurance; Filing of Formula

Sec. 1153.202.  REFUND OF INSURANCE CHARGE ON TERMINATION OF DEBT OR INSURANCE;  FILING OF FORMULA.  (a)  Each individual policy or group policy and group certificate must include a written notice stating that:
(1)  if the underlying debt or the insurance terminates before the originally scheduled termination date of the insurance, including the termination of a debt by renewing or refinancing the debt, the debtor shall be entitled to a refund of unearned premium; and
(2)  in the event that the underlying debt or the insurance terminates before the originally scheduled termination date of the insurance, including the termination of a debt by renewing or refinancing the debt, the person who is the holder of the underlying debt instrument on the date the debt terminates shall, no later than 60 days after the termination of the insurance, provide notice to the insurer of the termination of the debt, that includes the name and address of the insured and the payoff date of the underlying debt.
(a-1)  The refund of any amount of unearned premium paid by or charged to the debtor for insurance shall be paid or credited promptly to the person entitled to the refund no later than 30 days after receipt of the notice required to be sent to the insurer under Subsection (a)(2).
(a-2)  In any claim or action asserted by an insured against an insurer for failure to refund any unearned premium in accordance with this section, the insurer shall be entitled to indemnity from a holder who failed to provide the notice required under Subsection (a)(2).
(b)  A refund is not required if the amount of the refund is less than $3.
(c)  The formula to be used in computing the refund of the amount paid by or charged to the debtor for insurance if the underlying debt or the insurance terminates before the scheduled maturity date of the debt must be filed with and approved by the commissioner.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 2, eff. June 1, 2003.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 502 (S.B. 382), Sec. 1, eff. September 1, 2007.
2023 Texas Statutes › Insurance Code › Title 7 - Life Insurance and Annuities › Subtitle C - Specialized Coverages › Chapter 1153 - Credit Life Insurance and Credit Accident and Health Insurance › Subchapter E. Charges, Refunds, Adjustments, and Claims › Section 1153.203. Certain Refunds or Adjustments Required

Sec. 1153.203.  CERTAIN REFUNDS OR ADJUSTMENTS REQUIRED.  (a)  If the beginning of the term of insurance is delayed under Section 1153.157(c), the charge to the debtor for insurance shall be adjusted or the appropriate amount shall be refunded to the debtor.
(b)  If insurance is substituted under Section 1153.158(c) and the amount of premium for the substituted insurance is less than the amount specified in the application or notice of proposed insurance, the appropriate amount shall be refunded to the debtor.
(c)  If a creditor requires a debtor to make any payment for credit life insurance or credit accident and health insurance and an individual policy or group certificate of insurance is not issued, the creditor shall:
(1)  immediately give written notice to the debtor;  and
(2)  promptly make an appropriate credit to the debtor's account.
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 C - Specialized Coverages › Chapter 1153 - Credit Life Insurance and Credit Accident and Health Insurance › Subchapter E. Charges, Refunds, Adjustments, and Claims › Section 1153.204. Claim Under Policy

Sec. 1153.204.  CLAIM UNDER POLICY.  (a)  A claim for recovery under a policy to which this chapter applies shall be reported promptly to the insurer or the insurer's designated claim representative.
(b)  An insurer shall maintain adequate claim files.
(c)  A claim shall be settled as soon as possible and in accordance with the insurance contract.
(d)  A claim shall be paid by a draft drawn on the insurer or by check of the insurer to the order of the claimant to whom payment of the claim is due under the policy or on direction of the claimant to the person specified.
(e)  A plan or arrangement may not be used to authorize an individual, firm, or corporation, other than the insurer or the insurer's designated claim representative, to settle or adjust a claim.  The creditor may not be designated as claim representative for the insurer in settling or adjusting a claim.  Notwithstanding this subsection, a group policyholder, under an arrangement with the group insurer, may draw drafts or checks in payment of claims due to the group policyholder subject to audit and review by the insurer.
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 C - Specialized Coverages › Chapter 1153 - Credit Life Insurance and Credit Accident and Health Insurance › Subchapter O. Enforcement of Chapter; Penalty › Section 1153.701. Compliance Order

Sec. 1153.701.  COMPLIANCE ORDER.  (a)  If, after written notice to an insurer or other person who holds a license or other authorization issued by the commissioner and a hearing, the commissioner determines that a violation of this chapter or a rule adopted under this chapter has occurred, the commissioner shall issue the details of that determination and an order for compliance by a specified date.
(b)  An order issued under this section is binding on the insurer or other person to whom it is issued on the date specified in the order unless:
(1)  the order is withdrawn by the commissioner before that date;  or
(2)  the order is appealed under Subchapter D, Chapter 36.
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 C - Specialized Coverages › Chapter 1153 - Credit Life Insurance and Credit Accident and Health Insurance › Subchapter O. Enforcement of Chapter; Penalty › Section 1153.702. Penalty

Sec. 1153.702.  PENALTY.  (a)  An individual, firm, or corporation who violates a final order issued under this chapter is liable to the state in a civil action for a penalty of not more than:
(1)  $250;  or
(2)  $1,000, if the court finds the violation to be wilful.
(b)  The penalty provided by this section is in addition to any other penalty provided by law.
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 C - Specialized Coverages › Chapter 1153 - Credit Life Insurance and Credit Accident and Health Insurance › Subchapter O. Enforcement of Chapter; Penalty › Section 1153.703. Revocation or Suspension of Authority on Violation of Order

Sec. 1153.703.  REVOCATION OR SUSPENSION OF AUTHORITY ON VIOLATION OF ORDER.  After notice and a hearing, the commissioner may revoke or suspend the license or certificate of authority of an individual, firm, or corporation that violates an order issued under 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 C - Specialized Coverages › Chapter 1154 - Funding Agreements, Guaranteed Investment Contracts, and Synthetic Guaranteed Investment Contracts › Subchapter A. General Provisions › Section 1154.001. Short Title

Sec. 1154.001.  SHORT TITLE.  This chapter may be cited as the Act for the Regulation of Funding Agreements, Guaranteed Investment Contracts, and Synthetic Guaranteed Investment Contracts.
Added by Acts 2015, 84th Leg., R.S., Ch. 1187 (S.B. 1196), Sec. 2, eff. September 1, 2015.