reglab/statecodes huggingface dataset:
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 3 - LIFE, ACCIDENT, AND HEALTH INSURANCE AND ANNUITIES › Subchapter C - APPROVAL, DISAPPROVAL, AND WITHDRAWAL OF APPROVAL OF CERTAIN PARTICIPATING POLICY FORMS › Section 3.205 - Construction of Rules

Current through Reg. 49, No. 28; July 12, 2024
This subchapter may not be construed to prohibit the use of
					 any provision authorized by Insurance Code §
										541.056(c)
					 or other applicable statute.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 3 - LIFE, ACCIDENT, AND HEALTH INSURANCE AND ANNUITIES › Subchapter D - INDETERMINATE PREMIUM REDUCTION POLICIES › Section 3.301 - Purpose and Scope

Current through Reg. 49, No. 28; July 12, 2024
(a) This subchapter
				  is promulgated to regulate life insurance policies which have the following
				  characteristics:
(1) the premium for the
				  policy is guaranteed for an initial period of time but subsequent to such
				  initial period, a maximum premium charge is specified in the policy;
				  thereafter, the insurer reserves the right to charge a lesser unspecified
				  amount (this type of policy is hereinafter referred to as "an indeterminate
				  premium reduction policy");
(2) one
				  of the purposes of the policy is to provide insureds with insurance coverage at
				  a lower initial premium than would be obtainable from the insurer if the
				  premiums were required to be unchangeable by the insurer for the life of the
				  policy.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 3 - LIFE, ACCIDENT, AND HEALTH INSURANCE AND ANNUITIES › Subchapter D - INDETERMINATE PREMIUM REDUCTION POLICIES › Section 3.302 - Policy Form Submission

Current through Reg. 49, No. 28; July 12, 2024
(a) No
				  indeterminate premium reduction policy may be approved for use in Texas unless
				  the insurer files with the Texas Department of Insurance in conjunction with
				  such indeterminate premium reduction policy a statement:
(1) that, to the best of its knowledge and
				  belief, the policy submitted is in compliance with this subchapter;
(2) that advertising and solicitation will be
				  in compliance with this subchapter;
(3) that any premium redetermination will not
				  reflect a distribution of company surplus nor a return of previously collected
				  premiums; and
(4) that any
				  nonguaranteed premium rates used to market the policy are lower than rates
				  which the insurer is willing to guarantee in a fixed premium policy with the
				  same or similar benefits for insureds of essentially the same class of
				  risk.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 3 - LIFE, ACCIDENT, AND HEALTH INSURANCE AND ANNUITIES › Subchapter D - INDETERMINATE PREMIUM REDUCTION POLICIES › Section 3.303 - Solicitation and Advertising

Current through Reg. 49, No. 28; July 12, 2024
(a) The initial
				  premium charge and its period of guarantee, the maximum premium charge, the
				  fact that the maximum premium charge might be charged, and the frequency of
				  premium redetermination dates must be set forth prominently in:
(1) any advertising containing an application
				  or any advertisement used with a solicitation; and
(2) any oral or written solicitation. In any
				  such solicitation or advertisement the insurer or insurance agent must also
				  furnish the prospective insured with a written statement containing language
				  substantially as follows: The company reserves the right to charge the maximum
				  premium beginning with any premium redetermination date. The premium at
				  redetermination date, if less than the maximum premium stated in the policy, is
				  not guaranteed beyond the current redetermination period. Also, the premium at
				  redetermination date is subject to the company's expectations as to one or more
				  future cost factors including persistency, expenses, mortality, and interest.
				  Any increase in premium will not result in an increase in your benefits or cash
				  values, if any, or other nonforfeiture values.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 3 - LIFE, ACCIDENT, AND HEALTH INSURANCE AND ANNUITIES › Subchapter D - INDETERMINATE PREMIUM REDUCTION POLICIES › Section 3.304 - Summary of Provisions

Current through Reg. 49, No. 28; July 12, 2024
(a) Upon
				  application for an indeterminate premium reduction policy or group certificate,
				  a separate form containing a summary which adequately describes the contractual
				  premium provisions must be signed by the applicant and submitted to the insurer
				  in conjunction with the application. A portion of the summary must include the
				  following information:
(1) the fact that the
				  premium might be changed in the policy;
(2) the frequency of the possible
				  changes;
(3) the fact that the
				  nonguaranteed premium (if used in solicitation or advertising) is not
				  guaranteed but the full maximum could be charged; and
(4) for participating policies, a statement
				  that dividends are only payable if declared by the insurer. If it is not likely
				  that dividends will be paid, a statement to that effect must be
				  included.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 3 - LIFE, ACCIDENT, AND HEALTH INSURANCE AND ANNUITIES › Subchapter D - INDETERMINATE PREMIUM REDUCTION POLICIES › Section 3.305 - Relation of Initial to Later Premium Charge

Current through Reg. 49, No. 28; July 12, 2024
If the policy offers an initial premium which is different
					 from the maximum guaranteed premium specified in the policy for later policy
					 years, no solicitation or advertisement may display or state the smaller
					 premium in such a fashion that the larger premium charge is rendered obscure or
					 deemphasized. The smaller premium may not be displayed more prominently than
					 the larger premium charge.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 3 - LIFE, ACCIDENT, AND HEALTH INSURANCE AND ANNUITIES › Subchapter D - INDETERMINATE PREMIUM REDUCTION POLICIES › Section 3.306 - Premium Redetermination

Current through Reg. 49, No. 28; July 12, 2024
No policy may provide for premium changes more often than
					 once per policy year.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 3 - LIFE, ACCIDENT, AND HEALTH INSURANCE AND ANNUITIES › Subchapter D - INDETERMINATE PREMIUM REDUCTION POLICIES › Section 3.307 - Reclassification of Policyholders

Current through Reg. 49, No. 28; July 12, 2024
No insurer may, for premium redetermination purposes,
					 reclassify into subclasses or new classes the original class established for an
					 indeterminate premium reduction policy at date of issue.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 3 - LIFE, ACCIDENT, AND HEALTH INSURANCE AND ANNUITIES › Subchapter D - INDETERMINATE PREMIUM REDUCTION POLICIES › Section 3.308 - Minimum Nonforfeiture Values

Current through Reg. 49, No. 28; July 12, 2024
The minimum basis for cash values is stated in Insurance
					 Code Chapter 1105, wherein the adjusted premiums are required to be computed as
					 a "uniform percentage of the respective premiums specified by the policy."
					 Maximum guaranteed premiums in the policy are specified premiums as defined by
					 the code. Cash values, if any, will not be required to be redetermined when
					 premiums are reduced for in-force policies. Minimum nonforfeiture values for
					 indeterminate premium group policies on other than the term plan must be
					 calculated in accordance with this section.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 3 - LIFE, ACCIDENT, AND HEALTH INSURANCE AND ANNUITIES › Subchapter D - INDETERMINATE PREMIUM REDUCTION POLICIES › Section 3.310 - Artificial Maximum Premiums Prohibited

Current through Reg. 49, No. 28; July 12, 2024
(a) No
				  insurer may incorporate an increment into a maximum premium in an indeterminate
				  premium reduction policy in order to be able to show an increased reduction in
				  later policy years or to reduce cash values if any, as provided in Insurance
				  Code Chapter 1105, or reserves as provided in Insurance Code Chapter 425,
				  Subchapter B.
(b) As a condition
				  precedent to policy form approval, there must accompany each submission of an
				  indeterminate premium reduction policy a certification by a qualified actuary
				  to the following: that the maximum premiums specified in the policy do not
				  incorporate an increment as specified in subsection (a) of this section. An
				  approval of a policy form subsequent to receipt of the foregoing certification
				  may not be construed as a determination by the Texas Department of Insurance
				  that the certification is true and accurate.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 3 - LIFE, ACCIDENT, AND HEALTH INSURANCE AND ANNUITIES › Subchapter D - INDETERMINATE PREMIUM REDUCTION POLICIES › Section 3.311 - General Enforcement

Current through Reg. 49, No. 28; July 12, 2024
A failure to follow and abide by the representations and
					 disclosure provisions required by this subchapter in marketing the
					 indeterminate premium reduction policy is grounds for a withdrawal of approval
					 of the insurer's previously approved indeterminate premium reduction policy
					 forms and is grounds for disapproval of subsequently filed indeterminate
					 premium reduction policy forms. The provisions of this section are additional
					 to and cumulative of all other enforcement provisions provided by law including
					 Insurance Code Chapter 541.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 3 - LIFE, ACCIDENT, AND HEALTH INSURANCE AND ANNUITIES › Subchapter E - GROUP LIFE, AND/OR GROUP ACCIDENT AND HEALTH INSURANCE POLICIES AND CERTIFICATES › Section 3.408 - Mandatory Policy Provisions

Current through Reg. 49, No. 28; July 12, 2024
(a) Each group
				  policy of accident and sickness insurance that is delivered, issued for
				  delivery, or renewed in Texas on or after January 1, 1988, including a policy
				  issued by a company subject to Insurance Code Chapter 842, must contain a
				  benefit provision which states, "All benefits paid on behalf of the child or
				  children under the policy must be paid to the Texas Health and Human Services
				  Commission" whenever:
(1) the Texas Health
				  and Human Services Commission is paying benefits under Human Resources Code
				  Chapter 31 or Chapter 32, i.e., financial and medical assistance service
				  programs administered pursuant to the Human Resources Code; and
(2) the parent who is covered by the group
				  policy has possession or access to the child pursuant to a court order, or is
				  not entitled to access or possession of the child and is required by the court
				  to pay child support.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 3 - LIFE, ACCIDENT, AND HEALTH INSURANCE AND ANNUITIES › Subchapter F - RATE REVIEW FOR HEALTH BENEFIT PLANS › Section 3.501 - Purpose and Applicability

Current through Reg. 49, No. 28; July 12, 2024
(a) The
				  purpose of this subchapter is to implement Insurance Code Chapter 1698,
				  concerning Rates for Certain Coverage, and to establish an effective rate
				  review program in the individual and small group markets, consistent with
				  45 CFR
				  §
											154.301, concerning CMS's
				  Determinations of Effective Rate Review Programs.
(b) This subchapter applies to a plan that is
				  subject to Insurance Code Chapter 1698.
(c) This subchapter does not apply to:
(1) "short-term limited-duration insurance"
				  as defined in Insurance Code Chapter 1509, concerning Short-Term
				  Limited-Duration Insurance;
(2)
				  "grandfathered health plan coverage" as defined by
				  45 CFR §
												147.140, concerning Preservation of Right to
				  Maintain Existing Coverage; or
(3)
				  individual limited scope plans, including but not limited to dental benefit
				  plans and vision benefit plans.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 3 - LIFE, ACCIDENT, AND HEALTH INSURANCE AND ANNUITIES › Subchapter F - RATE REVIEW FOR HEALTH BENEFIT PLANS › Section 3.502 - Definitions

Current through Reg. 49, No. 28; July 12, 2024
For purposes of this subchapter, the following terms have
					 the meanings indicated, except where the context clearly indicates
					 otherwise:
(1) Actuarial value
				  (AV)--As defined in
				  45
				  CFR §
											156.20, concerning
				  Definitions.
(2) Cost-sharing
				  reductions (CSRs)--As defined in
				  45
				  CFR §
											155.20, concerning
				  Definitions.
(3) Essential health
				  benefits (EHBs)--Health benefits contained in the applicable "essential health
				  benefits package" as that term is defined in
				  45
				  CFR §
											156.20.
(4) Federal medical loss ratio standard--The
				  applicable medical loss ratio standard for the market segment involved,
				  determined under subpart B of 45 CFR part 158 , concerning Issuer Use of
				  Premium Revenue: Reporting and Rebate Requirements.
(5) HHS--The U.S. Department of Health and
				  Human Services.
(6) Issuer--An
				  insurance company or health maintenance organization that issues a plan that is
				  subject to Insurance Code Chapter 1698, concerning Rates for Certain
				  Coverage.
(7) Index rate--A rate
				  based on the total combined claims costs for providing essential health
				  benefits within the single risk pool of the applicable market.
(8) Plan--As defined in
				  45
				  CFR §
											144.103, concerning
				  Definitions.
(9) Product--As
				  defined in
				  45
				  CFR §
											154.102, concerning
				  Definitions.
(10) Qualified
				  actuary--An actuary who is certified by the American Academy of Actuaries to
				  meet the U.S. Qualification Standards.
(11) Single risk pool--With respect to a
				  particular issuer and for the purposes of considering claims experience and
				  developing an index rate, the grouping of all members enrolled in individual
				  market plans or small group market plans that are subject to this chapter,
				  consistent with
				  45 CFR §
											156.80, concerning Single Risk
				  Pool.
(12) Unified Rate Review
				  Template (URRT)--A spreadsheet that comprises Part I of the rate filing
				  justification, as described in
				  45 CFR §
											154.215, concerning Submission of Rate Filing
				  Justification.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 3 - LIFE, ACCIDENT, AND HEALTH INSURANCE AND ANNUITIES › Subchapter F - RATE REVIEW FOR HEALTH BENEFIT PLANS › Section 3.503 - Rating Standards

Current through Reg. 49, No. 28; July 12, 2024
A rate filing filed under this subchapter must comply with
					 all applicable state and federal requirements, including:
(1) Insurance Code Chapter 560, concerning
				  Prohibited Rates;
(2) Insurance
				  Code §
										843.2071,
				  concerning Notice of Increase in Charge for Coverage;
(3) Insurance Code §
										1201.109,
				  concerning Notice of Rate Increase for Major Medical Expense Insurance
				  Policy;
(4) Insurance Code Chapter
				  1271, Subchapter F, concerning Schedule of Charges;
(5) Insurance Code §
										1501.215,
				  concerning Reporting Requirements, and §1501.216, concerning Premium
				  Rates: Notice of Increase;
(6)
				  Insurance Code Chapter 1698, concerning Rates for Certain Coverage;
(7)
										42 USC §
											300gg, concerning Fair Health Insurance
				  Premiums;
(8)
										42 USC §
											300gg-94, concerning Ensuring That Consumers
				  Get Value for Their Dollars;
(9)
										42 USC §
											18032(c), concerning
				  Consumer Choice;
(10)
										45 CFR §
											147.102, concerning Fair Health Insurance
				  Premiums;
(11) 45 CFR Part 154 ,
				  concerning Health Insurance Issuer Rate Increases: Disclosure and Review
				  Requirements; and
(12)
										45 CFR §
											156.80, concerning Single Risk
				  Pool.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 3 - LIFE, ACCIDENT, AND HEALTH INSURANCE AND ANNUITIES › Subchapter F - RATE REVIEW FOR HEALTH BENEFIT PLANS › Section 3.504 - Geographic Rating Areas

Current through Reg. 49, No. 28; July 12, 2024
(a) An issuer
				  may vary rates based on rating area, which is determined:
(1) in the individual market, using the
				  primary policyholder's or contract holder's address; and
(2) in the small group market, using the
				  group policyholder's or contract holder's principal business address.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 3 - LIFE, ACCIDENT, AND HEALTH INSURANCE AND ANNUITIES › Subchapter F - RATE REVIEW FOR HEALTH BENEFIT PLANS › Section 3.505 - Required Rate Filings

Current through Reg. 49, No. 28; July 12, 2024
(a) An issuer
				  may not use a rate with respect to a plan if:
(1) the issuer has not filed the rate with
				  TDI for review;
(2) the rate filing
				  does not comply with the standards in §
											3.503 of this title (relating to
				  Rating Standards); or
(3) the rate
				  filing has been withdrawn.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 3 - LIFE, ACCIDENT, AND HEALTH INSURANCE AND ANNUITIES › Subchapter F - RATE REVIEW FOR HEALTH BENEFIT PLANS › Section 3.506 - Review of Rate Filings

Current through Reg. 49, No. 28; July 12, 2024
(a) Upon
				  receipt of a rate filing under this subchapter, TDI will evaluate whether the
				  issuer has provided sufficient data and documentation for TDI to make the
				  determinations specified in this section. If the level of detail provided by
				  the issuer under §
										3.505 of this title (relating to
				  Required Rate Filings) does not provide a sufficient basis for TDI to make a
				  determination, TDI will request additional information as necessary. The issuer
				  must provide the requested information within 10 business days of the request.
				  If the issuer fails to provide the requested information or establish a plan
				  that is acceptable to TDI to provide the information, TDI will deem the filing
				  withdrawn and notify the issuer of the withdrawal.
(b) In reviewing rates filed under this
				  subchapter, TDI will examine:
(1) the
				  reasonableness of the assumptions used by the issuer to develop the rates and
				  the validity of the historical data underlying the assumptions;
(2) the issuer's data related to past
				  projections and actual experience;
(3) the reasonableness of assumptions used by
				  the issuer to estimate the rate impact of the reinsurance and risk adjustment
				  programs under
				  42
				  USC §
												18061, concerning Transitional
				  Reinsurance Program for Individual Market in Each State, and
				  42 USC §
												18063, concerning Risk Adjustment;
				  and
(4) the issuer's data related
				  to implementation and ongoing utilization of a market-wide single risk pool,
				  essential health benefits, actuarial values, and other market reform rules as
				  required by 42 USC Subchapter XXV, Part A, concerning Individual and Group
				  Market Reforms.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 3 - LIFE, ACCIDENT, AND HEALTH INSURANCE AND ANNUITIES › Subchapter F - RATE REVIEW FOR HEALTH BENEFIT PLANS › Section 3.507 - Public Disclosure and Input

Current through Reg. 49, No. 28; July 12, 2024
(a)
				  Information related to proposed annual rate increases of 15% or more will be
				  publicly available on the website published by the Centers for Medicare and
				  Medicaid Services (CMS). A link to the CMS website will be posted on TDI's
				  website:
www.tdi.texas.gov/health/ratereview.html
.
(b) Public comments concerning proposed rate
				  increases can be sent to RateReview@tdi.texas.gov.
(c) Final rate increases will be publicly
				  available on the website published by CMS no later than the first day of the
				  annual open enrollment period in the individual market for the applicable
				  calendar year.
(d) TDI will make
				  information related to proposed or final rate filings available to the public
				  in a manner consistent with
				  45 CFR
				  §
											154.301(b),
				  concerning CMS's Determinations of Effective Rate Review Programs.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 3 - LIFE, ACCIDENT, AND HEALTH INSURANCE AND ANNUITIES › Subchapter G - PLAIN LANGUAGE REQUIREMENTS FOR HEALTH BENEFIT POLICIES › Section 3.602 - Plain Language Requirements

Current through Reg. 49, No. 28; July 12, 2024
(a) All health
				  benefit plan certificates, policies, evidences of coverage, endorsements,
				  amendments, applications, or riders shall be written in plain language and
				  shall comply with the requirements set forth in this subchapter.
(b) A health benefit plan certificate,
				  policy, evidence of coverage, endorsement, amendment, rider, or application
				  form, or a provision of such health benefit plan form shall comply with the
				  following.
(1) The text shall achieve a
				  minimum score of 40 on the Flesch reading ease test as provided in this
				  subchapter. For purposes of this section, a Flesch reading ease test score
				  shall be measured by the following method.
(A) The number of words and sentences in the
				  test shall be counted and the total number of words divided by the total number
				  of sentences. The figure obtained shall be multiplied by a factor of
				  1.015.
(B) The total number of
				  syllables shall be counted and divided by the total number of words. The figure
				  obtained shall be multiplied by a factor of 84.6.
(C) The sum of the figures computed under
				  paragraphs (A) and (B) of this section, subtracted from 206.835, equals the
				  Flesch reading ease score for the form.
(D) The entire health benefit plan, including
				  applications, endorsements, riders, and amendments shall be analyzed in
				  determining the Flesch reading ease test score; however:
(i) forms submitted independently of the
				  health benefit plan shall be analyzed independently and subject to all
				  requirements of this subchapter; and
(ii) endorsement, amendment, or rider forms
				  submitted independently of the health benefit plan that contain fewer than 150
				  words are not subject to the analysis.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 3 - LIFE, ACCIDENT, AND HEALTH INSURANCE AND ANNUITIES › Subchapter H - VARIABLE ANNUITIES › Section 3.701 - Purpose and Scope

Current through Reg. 49, No. 28; July 12, 2024
These sections are promulgated to regulate individual and
					 group variable annuity contracts and certificates delivered or issued for
					 delivery in this state, on and after the effective date of these
					 sections.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 3 - LIFE, ACCIDENT, AND HEALTH INSURANCE AND ANNUITIES › Subchapter H - VARIABLE ANNUITIES › Section 3.702 - Definitions

Current through Reg. 49, No. 28; July 12, 2024
The following words and terms, when used in this
					 subchapter, have the following meanings, unless the context clearly indicates
					 otherwise.
(1) Agent--Any person,
				  corporation, partnership, or other legal entity which is licensed as a life
				  insurance agent.
(2)
				  Commissioner--The commissioner of insurance of this state.
(3) Flexible premium contract--Any variable
				  annuity contract other than a scheduled premium variable annuity
				  contract.
(4) General account--All
				  assets of the insurer other than assets in separate accounts established
				  pursuant to Insurance Code Chapter 1152, or pursuant to the corresponding
				  section of the insurance laws of the state of domicile of a foreign or alien
				  insurer, whether or not for variable annuities.
(5) Net investment return--The rate of
				  investment return to be credited to the variable annuity contract in accordance
				  with the terms of the contract after deductions for tax charges, if any, and
				  for asset charges either at a rate not in excess of that stated in the
				  contract, or in the case of a contract issued by a nonprofit corporation under
				  which the contractholder participates fully in the investment, mortality, and
				  expense experience of the account, in an amount not in excess of the actual
				  expense not offset by other deductions. The net investment return to be
				  credited to a contract must be determined at least monthly.
(6) Scheduled premium contract--Any variable
				  contract under which both the timing and amount of premium payments are
				  fixed.
(7) Separate account--A
				  separate account established pursuant to Insurance Code Chapter 1152, or
				  pursuant to the corresponding section of the insurance laws of the state of
				  domicile of a foreign or alien insurer.
(8) Variable annuity contract--Any individual
				  annuity contract or group annuity contract or certificate issued in connection
				  with a group annuity master contract which provides for benefits which vary
				  according to the investment experience of a separate account established and
				  maintained by the insurer as to such contract, pursuant to Insurance Code
				  Chapter 1152. Annuity benefits may be payable in fixed or variable amounts or
				  both.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 3 - LIFE, ACCIDENT, AND HEALTH INSURANCE AND ANNUITIES › Subchapter H - VARIABLE ANNUITIES › Section 3.703 - Qualifications of Insurer To Issue Variable Annuities

Current through Reg. 49, No. 28; July 12, 2024
The following requirements are applicable to all insurers
					 either seeking authority to issue variable annuities in this state or having
					 the authority to issue variable annuity products in this state.
(1) Licensing and approval to do business in
				  this state. An insurer shall not deliver or issue for delivery in this state
				  any variable annuity unless:
(A) the insurer
				  is licensed or organized to do a life insurance business in this state;
				  and
(B) after notice and hearing,
				  the commissioner has authorized, either as part of the insurer's original
				  certificate of authority or by charter amendment, the insurer to issue,
				  deliver, and use variable annuity contracts, and only after he or she has
				  considered, among other things, the following:
(i) whether the plan of operation for the
				  issuance of variable annuity contracts is sound;
(ii) whether the general character,
				  reputation, and experience of the management and those persons or firms
				  proposed to supply consulting, investment, administrative, or custodial
				  services to the insurer are such as to reasonably assure competent operation of
				  the variable annuity business of the insurer in this state; and
(iii) whether the present and foreseeable
				  future financial condition of the insurer and its method of operation in
				  connection with the issuance of such contracts is likely to render its
				  operation hazardous to the public or its contract holders in this state. The
				  commissioner shall consider, among other things:
(I) the history of operation and financial
				  condition of the insurer;
(II) the
				  qualifications, fitness, character, responsibility, reputation, and experience
				  of the officers and directors and other management of the insurer and those
				  persons or firms proposed to supply consulting, investment, administrative, or
				  custodial services to the insurer;
(III) the applicable law and regulations
				  under which the insurer is authorized in its state of domicile to issue
				  variable annuity contracts. The state of entry of an alien insurer shall be
				  deemed its state of domicile for this purpose; and
(IV) if the insurer is a subsidiary of, or is
				  affiliated by common management or ownership with another company, its
				  relationship to such other company, and the degree to which the requesting
				  insurer, as well as the other company, meets the standards specified in this
				  subparagraph.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 3 - LIFE, ACCIDENT, AND HEALTH INSURANCE AND ANNUITIES › Subchapter H - VARIABLE ANNUITIES › Section 3.704 - Separate Accounts

Current through Reg. 49, No. 28; July 12, 2024
(a) Establishment
				  of separate account. Any domestic life insurance company issuing variable
				  annuity contracts must establish one or more separate accounts pursuant to
				  Insurance Code Chapter 1152.
(1) If no law or
				  other regulation provides for the custody of separate account assets, and if
				  such insurer is not the custodian of such separate account assets, all
				  contracts for custody of such assets must be in writing, and the commissioner
				  has authority to review and disapprove both the terms of any such contract and
				  the proposed custodian prior to the transfer of custody.
(2) In connection with the handling of
				  separate account assets, such insurer may not without prior written approval of
				  the commissioner, employ in any material manner any person who:
(A) within the last 10 years has been
				  convicted of any felony or a misdemeanor arising out of such person's conduct
				  involving embezzlement, fraudulent conversion, or misappropriation of funds or
				  securities or involving violation of
				  18 United States Code
				  §§1341,
				  1342,
				  or
				  1343,
				  as amended; or
(B) within the last
				  10 years has been found by any state regulatory authority to have violated or
				  has acknowledged violation of any provision of any state insurance law
				  involving fraud, deceit, or knowing misrepresentation; or
(C) within the last 10 years has been found
				  by federal or state regulatory authorities to have violated or has acknowledged
				  violation of any provision of federal or state laws involving fraud, deceit, or
				  knowing misrepresentation.
(3) All persons with access to the cash,
				  securities, or other assets allocated to or held by the separate account must
				  be under bond in the amount of not less than $100,000.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 3 - LIFE, ACCIDENT, AND HEALTH INSURANCE AND ANNUITIES › Subchapter H - VARIABLE ANNUITIES › Section 3.705 - Contract Requirements

Current through Reg. 49, No. 28; July 12, 2024
Variable annuity contracts must conform to the requirements
					 of this section in order to obtain the commissioner's approval.
(1) Filing of variable annuity contracts. All
				  variable annuity contracts, all riders, endorsements, applications, and other
				  documents which are attached to and made a part of the contract and which
				  relate to the variable nature of the contract, shall be filed with the
				  commissioner and approved, as applicable, by him or her prior to delivery or
				  issuance for delivery in this state.
(A) Each
				  variable annuity contract and related forms shall be filed according to
				  Subchapter A (Board Order 40701) of this chapter (relating to Preparation and
				  Submission of Individual Life Insurance and Annuity Forms).
(B) The commissioner may approve variable
				  annuity contracts and related forms with provisions the commissioner deems to
				  be not less favorable to the contract holder, certificate holder, and the
				  beneficiary than those required by these sections.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 3 - LIFE, ACCIDENT, AND HEALTH INSURANCE AND ANNUITIES › Subchapter H - VARIABLE ANNUITIES › Section 3.706 - Separability

Current through Reg. 49, No. 28; July 12, 2024
If any provision of these sections or the application
					 thereof to any person or circumstance is for any reason held to be invalid, the
					 remainder of these sections and the application of such provision to other
					 persons or circumstances shall not be affected thereby.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 3 - LIFE, ACCIDENT, AND HEALTH INSURANCE AND ANNUITIES › Subchapter I - VARIABLE LIFE INSURANCE › Section 3.801 - Purpose and Scope

Current through Reg. 49, No. 28; July 12, 2024
These sections are promulgated to regulate individual
					 variable life insurance contracts issued or delivered for issue in this state,
					 on and after the effective date of these sections.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 3 - LIFE, ACCIDENT, AND HEALTH INSURANCE AND ANNUITIES › Subchapter I - VARIABLE LIFE INSURANCE › Section 3.803 - Qualifications of Insurer to Issue Variable Life Insurance

Current through Reg. 49, No. 28; July 12, 2024
The following requirements are applicable to all insurers
					 either seeking authority to issue variable life insurance in this state or
					 having the authority to issue variable life insurance in this state.
(1) Licensing and approval to do business in
				  this state. An insurer may not deliver or issue for delivery in this state any
				  variable life insurance contracts unless:
(A)
				  the insurer is licensed or organized to do a life insurance business in this
				  state; and
(B) after having
				  complied with the provisions of Insurance Code Chapter 1152, concerning notice
				  and hearing, the commissioner has authorized, either as part of the insurer's
				  original certificate of authority or by charter amendment, the insurer to
				  issue, deliver, and use variable life contracts, and only after the
				  commissioner has considered among other things the following:
(i) whether the plan of operation for the
				  issuance of variable life contracts is sound;
(ii) whether the general character,
				  reputation, and experience of the management and those persons or firms
				  proposed to supply consulting, investment, administrative, or custodial
				  services to the insurer are such as to reasonably assure competent operation of
				  the variable life business of the insurer in this state; and
(iii) whether the present and foreseeable
				  future financial condition of the insurer and its method of operation in
				  connection with the issuance of such contracts is not likely to render its
				  operation hazardous to the public or its contractholders in this state. The
				  commissioner will consider, among other things:
(I) the history of operation and financial
				  condition of the insurer;
(II) the
				  qualifications, fitness, character, responsibility, reputation, and experience
				  of the officers and directors and other management of the insurer and those
				  persons or firms proposed to supply consulting, investment, administrative, or
				  custodial services to the insurer;
(III) the applicable law and regulations
				  under which the insurer is authorized in its state of domicile to issue
				  variable life contracts. The state of entry of an alien insurer will be deemed
				  its state of domicile for this purpose; and
(IV) if the insurer is a subsidiary of, or is
				  affiliated by common management or ownership with, another company, its
				  relationship to such other company and the degree to which the requesting
				  insurer, as well as the other company, meets these standards.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 3 - LIFE, ACCIDENT, AND HEALTH INSURANCE AND ANNUITIES › Subchapter I - VARIABLE LIFE INSURANCE › Section 3.804 - Insurance Contract and Filing Requirements

Current through Reg. 49, No. 28; July 12, 2024
The commissioner will not approve any variable life
					 insurance form filed pursuant to these rules unless it conforms to the
					 requirement of applicable law.
(1)
				  Filing of variable life contracts. All variable life contracts, and all riders,
				  endorsements, applications, and other documents which are to be attached to and
				  made a part of the contract and which relate to the variable nature of the
				  contract, must be filed with the commissioner and approved or exempted, as
				  applicable, by the commissioner prior to delivery or issuance for delivery in
				  this state.
(A) Each variable life contract,
				  rider, endorsement, and application must be filed in accordance with Subchapter
				  A of this chapter (relating to Submission Requirements for Filings and
				  Departmental Actions Related to Such Filings. A flexible premium variable life
				  contract submission must be accompanied by the following:
(i) a mathematical demonstration comparing
				  the specimen contract's cash surrender values, assuming the contract's assumed
				  investment rate, if any, or in the absence of an assumed investment rate, on a
				  rate not to exceed the maximum interest rate allowed by Insurance Code Chapter
				  1105, to the minimum cash surrender value described in paragraph (2)(F) of this
				  section. The specimen contract should be for the minimum initial face amount
				  permitted to be issued to a male age 35. The demonstration should not assume
				  changes in face amount which are optional to the contractholder. The maturity
				  date and the premium paying period should be the maximum permitted by the
				  contract. The premium for each year should be the greater of the minimum
				  premium permitted for that year or the premium that will allow the contract to
				  mature at the maturity date assuming guaranteed charges and the assumed
				  investment rate, if any, or, in the absence of an assumed investment rate, a
				  rate not to exceed the maximum interest rate permitted by Insurance Code
				  Chapter 1105 ;
(ii) an actuarial
				  description which sets forth maximum expense charges, loads, and surrender
				  charges, applicable to the contract at issue and upon a change in basic
				  coverage for all ages, bands, and classes of risk, will be provided in
				  conjunction with the contract.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 3 - LIFE, ACCIDENT, AND HEALTH INSURANCE AND ANNUITIES › Subchapter I - VARIABLE LIFE INSURANCE › Section 3.806 - Separate Accounts

Current through Reg. 49, No. 28; July 12, 2024
The following requirements apply to the establishment and
					 administration of variable life insurance separate accounts by any domestic
					 insurer.
(1) Establishment of separate
				  accounts. Any domestic life insurance company issuing variable life contracts
				  must establish one or more separate accounts pursuant to Insurance Code Chapter
				  1152.
(A) If no law or other regulation
				  provides for the custody of separate account assets and if such insurer is not
				  the custodian of such separate account assets, all contracts for custody of
				  such assets must be in writing and the commissioner has authority to review and
				  approve of both the terms of any such contract and the proposed custodian prior
				  to the transfer of custody.
(B) In
				  connection with the handling of separate account assets, such insurer may not
				  without prior written approval of the commissioner, employ in any material
				  manner any person who:
(i) within the last 10
				  years has been convicted of any felony or a misdemeanor arising out of such
				  person's conduct involving embezzlement, fraudulent conversion, or
				  misappropriation of funds or securities or involving violation of
				  18 United States Code
				  §§1341,
				  1342,
				  or
				  1343,
				  as amended; or
(ii) within the last
				  10 years had been found by any state regulatory authority to have violated or
				  has acknowledged violation of any provision of any state insurance law
				  involving fraud, deceit, or knowing misrepresentation; or
(iii) within the last 10 years has been found
				  by federal or state regulatory authorities to have violated or has acknowledged
				  violation of any provision of federal or state laws involving fraud, deceit, or
				  knowing misrepresentation.
(C) All persons with access to the cash,
				  securities, or other assets allocated to or held by the separate account must
				  be under bond in the amount of not less than $100,000.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 3 - LIFE, ACCIDENT, AND HEALTH INSURANCE AND ANNUITIES › Subchapter I - VARIABLE LIFE INSURANCE › Section 3.807 - Information Furnished to Applicants

Current through Reg. 49, No. 28; July 12, 2024
An insurer delivering or issuing for delivery in this state
					 any variable life insurance contracts shall deliver to the applicant for such
					 contract, and obtain a written acknowledgment of receipt from such applicant
					 coincident with or prior to the execution of the application, the following
					 information. The requirements of this section shall be deemed to have been
					 satisfied to the extent that a disclosure containing information required by
					 this section is delivered, either in the form of a prospectus included in the
					 requirements of
					 15
					 United States Code §77a, et seq., which
					 was declared effective by the Securities and Exchange Commission; or all
					 information and reports required by
					 29 United States
					 Code §1001 et seq., if the policies are
					 exempted from the registration requirements of
					 15
					 United States Code §77a, et seq.:
(1) a summary explanation in nontechnical
				  terms, of the principal features of the contract, including a description of
				  the manner in which the variable benefits will reflect the investment
				  experience of the separate account and the factors which affect such variation.
				  Such explanation must include notices of the provision required by §
										3.804(3)(A)(v)
				  and (3)(F) of this title (relating to
				  Insurance Contract and Filing Requirements);
(2) a statement of the investment policy of
				  the separate account, including:
(A) a
				  description of the investment objectives intended for the separate account and
				  the principal types of investments intended to be made; and
(B) any restrictions or limitations on the
				  manner in which the operations of the separate account are intended to be
				  conducted;
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 3 - LIFE, ACCIDENT, AND HEALTH INSURANCE AND ANNUITIES › Subchapter I - VARIABLE LIFE INSURANCE › Section 3.808 - Application

Current through Reg. 49, No. 28; July 12, 2024
The application for a variable life contract shall
					 contain:
(1) a prominent statement
				  that the death benefit may be variable or fixed under specified
				  conditions;
(2) a prominent
				  statement that cash values may increase or decrease in accordance with the
				  experience of the separate account (subject to any specified minimum
				  guarantees);
(3) questions designed
				  to elicit information which enables the insurer to determine the suitability of
				  variable life insurance for the applicant.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 3 - LIFE, ACCIDENT, AND HEALTH INSURANCE AND ANNUITIES › Subchapter I - VARIABLE LIFE INSURANCE › Section 3.809 - Reports to Contractholders

Current through Reg. 49, No. 28; July 12, 2024
Any insurer delivering or issuing for delivery in this
					 state any variable life contracts shall mail to each variable life insurance
					 contractholder at his or her last known address the following reports.
(1) Within 30 days after each anniversary of
				  the contract, a statement or statements of the cash surrender value, death
				  benefit, any partial withdrawal or contract loan, any interest charge, any
				  optional payments allowed pursuant to §
										3.804(4)
				  of this title (relating to Insurance Contract and Filing Requirements) under
				  the contract computed as the contract anniversary date. Provided, however, that
				  such statement may be furnished within 30 days after a specified date in each
				  contract year so long as the information contained therein is computed as of a
				  date not more than 60 days prior to the mailing of such notice. This statement
				  shall state that, in accordance with the investment experience of the separate
				  account, the cash surrender values and the variable death benefit may increase
				  of decrease, and shall prominently identify any value described therein which
				  may be recomputed prior to the next statement required by this section. If the
				  contract guarantees that the variable death benefit on the next contract
				  anniversary date will not be less than the variable death benefit specified in
				  such statement, the statement shall be modified to so indicate. For flexible
				  premium contracts, the report must contain a reconciliation of the change since
				  the previous report in contract value and cash surrender value, if different,
				  because of payments made less deduction for expense charges, withdrawals,
				  investment experience, insurance charges, and any other charges made against
				  the contract value. In addition, the report must show the projected contract
				  value and cash surrender value, if different, as of one year from the end of
				  the period covered by the report assuming that:
(A) planned periodic premiums, if any, are
				  paid as scheduled;
(B) guaranteed
				  costs of insurance are deducted; and
(C) the net return is equal to the assumed
				  rate or, in the absence of an assumed rate, is not greater than zero. If the
				  projected value is less than zero, a warning message must be included that
				  states that the contract may be in danger of terminating without value in the
				  next 12 months unless additional premium is paid.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 3 - LIFE, ACCIDENT, AND HEALTH INSURANCE AND ANNUITIES › Subchapter I - VARIABLE LIFE INSURANCE › Section 3.810 - Separability

Current through Reg. 49, No. 28; July 12, 2024
If any provision of §§
										3.801-3.811 of this
					 title (relating to Variable Life Insurance) or the application thereof to any
					 person or circumstance is for any reason held to be invalid, the remainder of
					 the sections and the application of such provision to other persons or
					 circumstances shall not be affected thereby.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 3 - LIFE, ACCIDENT, AND HEALTH INSURANCE AND ANNUITIES › Subchapter I - VARIABLE LIFE INSURANCE › Section 3.811 - Savings Clause

Current through Reg. 49, No. 28; July 12, 2024
Each cause of action, pending litigation, or matter in
					 process before the Texas Department of Insurance or commissioner of insurance
					 will be determined in accordance with and governed by the applicable statutes,
					 rules, orders, or interpretations of the Texas Department of Insurance in
					 effect at the time of the occurrence of the subject event; and this section
					 operates to save the application of such past procedure and law to any such
					 event from amendment, change, or repeal, notwithstanding any provision of this
					 subchapter or any conflict or ambiguity therein.