reglab/statecodes huggingface dataset:
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 4 - LIFE AND ANNUITY › Subchapter J - INDETERMINATE PREMIUM REDUCTION POLICIES › Section 4.1002 - 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 the insurer's
				  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 that
				  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 4 - LIFE AND ANNUITY › Subchapter J - INDETERMINATE PREMIUM REDUCTION POLICIES › Section 4.1004 - 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 that 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 4 - LIFE AND ANNUITY › Subchapter J - INDETERMINATE PREMIUM REDUCTION POLICIES › Section 4.1005 - Relation of Initial to Later Premium Charge

Current through Reg. 49, No. 28; July 12, 2024
If the policy offers an initial premium that 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 4 - LIFE AND ANNUITY › Subchapter J - INDETERMINATE PREMIUM REDUCTION POLICIES › Section 4.1008 - 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, concerning Standard Nonforfeiture Law for Life Insurance,
					 which requires the adjusted premiums 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 Insurance 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 4 - LIFE AND ANNUITY › Subchapter J - INDETERMINATE PREMIUM REDUCTION POLICIES › Section 4.1010 - 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, concerning Standard
				  Nonforfeiture Law for Life Insurance, or reserves as provided in Insurance Code
				  Chapter 425, Subchapter B, concerning Standard Valuation Law.
(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 after
				  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 4 - LIFE AND ANNUITY › Subchapter J - INDETERMINATE PREMIUM REDUCTION POLICIES › Section 4.1011 - 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, concerning Unfair Methods of Competition and Unfair
					 or Deceptive Acts or Practices.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 4 - LIFE AND ANNUITY › Subchapter K - STANDARDS FOR ACCELERATION-OF-LIFE-INSURANCE BENEFITS FOR INDIVIDUAL AND GROUP POLICIES AND RIDERS › Section 4.1101 - Purpose; Severability

Current through Reg. 49, No. 28; July 12, 2024
(a) The
				  commissioner enacts this subchapter to:
(1)
				  expand the circumstances under which insurers can offer
				  acceleration-of-life-insurance benefits, thus enhancing financial choices for
				  insureds facing terminal or life-threatening illnesses or conditions;
(2) implement revised statutory requirements
				  for certain group and individual life insurance contracts;
(3) set uniform standards for offering
				  acceleration-of-life-insurance benefits that will be applicable to all group
				  and individual life insurance plans, creating a level playing field for
				  insurers and key protections for consumers;
(4) allow insurers, with proper disclosures,
				  to offer benefits that will qualify for favorable tax treatment under federal
				  law, as well as benefits that may not qualify for favorable tax treatment, but
				  that are available to a broader class of insureds; and
(5) ensure that
				  acceleration-of-life-insurance benefit provisions that fund long-term care
				  expenses conform basic definitions and eligibility triggers to those in rules
				  setting minimum standards for long-term care insurance contracts.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 4 - LIFE AND ANNUITY › Subchapter K - STANDARDS FOR ACCELERATION-OF-LIFE-INSURANCE BENEFITS FOR INDIVIDUAL AND GROUP POLICIES AND RIDERS › Section 4.1102 - Acceleration-of-Life-Insurance: Scope of Benefits

Current through Reg. 49, No. 28; July 12, 2024
(a) An
				  acceleration-of-life-insurance benefit provision provides a special benefit
				  under a life insurance contract that prepays all or a portion of the death
				  benefit based on a long-term care illness, specified disease, or terminal
				  illness.
(b) The following words
				  and terms, when used in this subchapter, have the following meanings unless the
				  context clearly indicates otherwise.
(1) Life
				  insurance contract--An individual life insurance policy, a group life insurance
				  policy or certificate of insurance, or a rider to an individual or group life
				  insurance policy or group certificate of insurance.
(2) Long-term care illness--An illness or
				  physical condition that results in the inability to perform the activities of
				  daily living or the substantial and material duties of any occupation. Evidence
				  of a long-term care illness includes, but is not limited to, illnesses or
				  conditions that require:
(A) confinement in a
				  convalescent nursing home, residential care or intermediate nursing facility,
				  defined consistently with the provisions of §
												3.3812 of this title (relating to
				  Policy Standards for Provider); or
(B) adult day care services, as defined and
				  provided consistently with §
												3.3804(b) of this
				  title (relating to Definitions), and home health care services, as defined and
				  provided consistently with §
												3.3804(b) of this
				  title.
(3) Specified
				  disease--An illness or physical condition that is likely to cause permanent
				  disability or premature death, including, but not limited to, the following:
(A) AIDS;
(B) a malignant tumor;
(C) a condition requiring organ
				  transplantation;
(D) a coronary
				  artery disease resulting in acute infarction or requiring surgery;
(E) a permanent neurological deficit
				  resulting from cerebral vascular accident; or
(F) a condition of similar severity as
				  specified in the life insurance contract that would be expected to impair the
				  insured's quality or length of life in the absence of appropriate medical
				  attention.
(4) Terminal
				  illness--An illness or physical condition, including a physical injury, that
				  can reasonably be expected to result in death in two years or less.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 4 - LIFE AND ANNUITY › Subchapter K - STANDARDS FOR ACCELERATION-OF-LIFE-INSURANCE BENEFITS FOR INDIVIDUAL AND GROUP POLICIES AND RIDERS › Section 4.1103 - Required Policy Definitions; Evidence of Total and Permanent Disability

Current through Reg. 49, No. 28; July 12, 2024
(a) Acceleration-of-life-insurance benefits,
				  and the illness, condition, care, or confinement necessary to evidence that the
				  insured has a long-term care illness, specified disease, or terminal illness,
				  must be clearly defined in the life insurance contract consistently with this
				  subchapter.
(b) Such illness,
				  condition, care, or confinement is evidence of total and permanent disability
				  for purposes of meeting the standards for providing
				  acceleration-of-life-insurance benefits set forth in Insurance Code §
										1111.052, concerning
				  Authority to Pay Accelerated Term Life Benefits, and §1201.003, concerning
				  Applicability of Chapter, and §
										4.1102 of this title (relating to
				  Acceleration-of-Life-Insurance: Scope of Benefits).
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 4 - LIFE AND ANNUITY › Subchapter K - STANDARDS FOR ACCELERATION-OF-LIFE-INSURANCE BENEFITS FOR INDIVIDUAL AND GROUP POLICIES AND RIDERS › Section 4.1104 - Standards for Medical Diagnoses

Current through Reg. 49, No. 28; July 12, 2024
The acceleration-of-life-insurance benefit provision may
					 require a medical diagnosis of conditions and/or documentation of care or
					 confinement as defined in the life insurance contract to establish eligibility
					 for acceleration-of-life-insurance benefits. This may include a written medical
					 opinion, satisfactory to the company, that the insured has a terminal illness,
					 a long-term care illness, or a specified disease. If additional diagnoses by a
					 physician selected by the company are required, the
					 acceleration-of-life-insurance benefit provision, or a disclosure statement
					 attached to the front of the policy or rider, must specify that the additional
					 diagnoses are at the expense of the company and how conflicting diagnoses will
					 be reconciled. The specific standards sufficient to meet such eligibility
					 requirements must be defined in the life insurance contract, and any
					 acceleration-of-life-insurance benefit must be conditioned only upon such
					 requirement or requirements as defined.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 4 - LIFE AND ANNUITY › Subchapter K - STANDARDS FOR ACCELERATION-OF-LIFE-INSURANCE BENEFITS FOR INDIVIDUAL AND GROUP POLICIES AND RIDERS › Section 4.1107 - Limitations on Reduction of Cash Values

Current through Reg. 49, No. 28; July 12, 2024
Except as otherwise authorized under the lien method for
					 determining benefits under §
										4.1106(3) of this
					 title (relating to Methods for Determining Benefits and Allowable Charges and
					 Fees), if the cash values are reduced by the acceleration-of-life-insurance
					 benefit, related charges, and interest, the reduction may not be unjust and may
					 not exceed an amount equal to the pro rata portion of the cash value associated
					 with the death benefit used in providing the acceleration-of-life-insurance
					 benefit. Future cash values may not be less than the minimum cash values
					 required by Insurance Code Chapter 1105, concerning Standard Nonforfeiture Law
					 for Life Insurance, for the reduced future guaranteed death benefits. These
					 minimum cash values are equal to the present value of the reduced future
					 guaranteed benefits less the present value of future adjusted premiums,
					 decreased by the amount of any indebtedness, including liens, under the life
					 insurance contract. The mortality and interest used in calculating the minimum
					 cash values will be as provided in Insurance Code Chapter 1105, for life
					 insurance coverage, disregarding any acceleration-of-life-insurance
					 benefits.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 4 - LIFE AND ANNUITY › Subchapter K - STANDARDS FOR ACCELERATION-OF-LIFE-INSURANCE BENEFITS FOR INDIVIDUAL AND GROUP POLICIES AND RIDERS › Section 4.1108 - Pro Rata Reduction of Loan upon Acceleration of Benefits

Current through Reg. 49, No. 28; July 12, 2024
Unless the insurer is using the lien method for determining
					 benefits under §
										4.1106(3) of this
					 title (relating to Methods for Determining Benefits and Allowable Charges and
					 Fees), if there is a loan on the life insurance contract, the insurer may
					 deduct up to a pro rata portion of the loan from the amount of the
					 acceleration-of-life-insurance benefit.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 4 - LIFE AND ANNUITY › Subchapter K - STANDARDS FOR ACCELERATION-OF-LIFE-INSURANCE BENEFITS FOR INDIVIDUAL AND GROUP POLICIES AND RIDERS › Section 4.1109 - Effect of Acceleration of Benefits on Nonforfeiture Calculations

Current through Reg. 49, No. 28; July 12, 2024
An acceleration-of-life-insurance benefit provision or
					 rider must be disregarded in ascertaining nonforfeiture benefits under
					 Insurance Code Chapter 1105, concerning Standard Nonforfeiture Law for Life
					 Insurance.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 4 - LIFE AND ANNUITY › Subchapter K - STANDARDS FOR ACCELERATION-OF-LIFE-INSURANCE BENEFITS FOR INDIVIDUAL AND GROUP POLICIES AND RIDERS › Section 4.1110 - Calculation of Reserves

Current through Reg. 49, No. 28; July 12, 2024
(a) Reserves for an
				  acceleration-of-life-insurance benefit must be based on tables of disablement,
				  morbidity, or mortality appropriate for determining liability for the benefits
				  provided. Such disablement or morbidity tables must be certified as appropriate
				  by a member of the American Academy of Actuaries and approved by the Texas
				  Department of Insurance under Insurance Code §
										425.058(k),
				  concerning Computation of Minimum Standard: General Rule, and §425.069,
				  concerning Reserve Computation: Indeterminate Premium Plans and Certain Other
				  Plans. Reserves for the death benefits or other supplementary benefits provided
				  by a life insurance contract that includes an acceleration-of-life-insurance
				  benefit must be calculated disregarding such benefit, using mortality and
				  interest rates as provided in Insurance Code Chapter 425, concerning Reserves
				  and Investments for Life Insurance. The basis of reserves for any life
				  insurance contract that contains an acceleration-of-life-insurance benefit
				  provision must accompany the filing of the contract with the Texas Department
				  of Insurance.
(b) Reserves for an
				  acceleration-of-life-insurance benefit under the lien method for determining
				  benefits under §
										4.1106(3) of this
				  title (relating to Methods for Determining Benefits and Allowable Charges and
				  Fees), including accrued interest, represent assets of the company for
				  statutory reporting purposes. For any life insurance contract on which the lien
				  exceeds the policy's statutory reserve liability, such excess must be held as a
				  non-admitted asset.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 4 - LIFE AND ANNUITY › Subchapter K - STANDARDS FOR ACCELERATION-OF-LIFE-INSURANCE BENEFITS FOR INDIVIDUAL AND GROUP POLICIES AND RIDERS › Section 4.1111 - Unfair, Discriminatory, or Deceptive Practices Prohibited

Current through Reg. 49, No. 28; July 12, 2024
(a) Acceleration-of-life-insurance benefit
				  provisions are subject to Insurance Code Chapter 541, concerning Unfair Methods
				  of Competition and Unfair or Deceptive Acts or Practices, and rules promulgated
				  under Chapter 541.
(b) Insurers
				  offering acceleration-of-life-insurance benefits may not engage in unfair,
				  discriminatory, or deceptive practices in relation to the offer, sale, or
				  administration of acceleration-of-life-insurance benefits, including, but not
				  limited to, the following practices:
(1)
				  reclassification of the insured as a result of payment of the benefit specified
				  in an acceleration-of-life-insurance benefit provision to a class of risk less
				  favorable than the class of risk to which the insured originally
				  belonged;
(2) unfair discrimination
				  among insureds with differing qualifying events; or
(3) unfair discrimination among insureds with
				  similar qualifying events.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 4 - LIFE AND ANNUITY › Subchapter K - STANDARDS FOR ACCELERATION-OF-LIFE-INSURANCE BENEFITS FOR INDIVIDUAL AND GROUP POLICIES AND RIDERS › Section 4.1112 - Notice and Disclosure Requirements for Life Insurance Contracts Containing Acceleration-of-Life-Insurance Benefits

Current through Reg. 49, No. 28; July 12, 2024
(a) Except as otherwise stated in this
				  section, every life insurance contract containing an
				  acceleration-of-life-insurance benefit provision is subject to the notice and
				  disclosure requirements in paragraphs (1) - (5) of this subsection.
(1) Except as otherwise provided in this
				  paragraph, the face of every such life insurance contract must contain a
				  prominent notice printed, over-printed or stamped, as appropriate,
				  substantially as follows: "Death benefits, cash values, and loan values will be
				  reduced if an acceleration-of-life-insurance benefit is paid." This statement
				  must be appropriately modified for contracts that have no cash or loan values,
				  or in which the cash value is not reduced.
(2) The title of any
				  acceleration-of-life-insurance benefit must be descriptive of the coverage
				  provided and must use such terms as "acceleration-of-life-insurance benefit,"
				  "accelerated benefit," or words of similar import.
(3) At the time of the payment of a lump sum
				  acceleration-of-life-insurance benefit, or, if periodic payments are being
				  made, no less frequently than every 12 months, the insurer must send a
				  statement to the owner or holder of the life insurance contract, specifying:
(A) the amount of benefits paid (or the
				  amount of benefits paid since the last report);
(B) the effect of the
				  acceleration-of-life-insurance benefit payment on the death benefit, face
				  amount, specified amount, accumulation values, cash values, loan amounts,
				  future charges, and future premiums; and
(C) the amount of benefits remaining
				  available for acceleration.
(4) Notice that the owner of the life
				  insurance contract will receive the statement described in paragraph (3) of
				  this subsection must be included in the acceleration-of-life-insurance benefit
				  provisions of the life insurance contract.
(5) As appropriate, the disclosures contained
				  in either subsection (a) or (b) of §
											4.1116 of this title (relating to
				  Disclosures Related to Tax Qualification of Benefits and Benefits' Effect on
				  Public Assistance), and the disclosure contained in subsection (c) of
				  §4.1116, or disclosures substantially similar to these disclosures, must
				  be included on or attached to the front page of each life insurance contract
				  subject to this subchapter, except as provided in subsection (e) of
				  §4.1116.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 4 - LIFE AND ANNUITY › Subchapter K - STANDARDS FOR ACCELERATION-OF-LIFE-INSURANCE BENEFITS FOR INDIVIDUAL AND GROUP POLICIES AND RIDERS › Section 4.1113 - Notice and Disclosure Requirements for Marketing Materials

Current through Reg. 49, No. 28; July 12, 2024
(a) Any "invitation to contract," as defined
				  in §
										21.102 of this title (relating to
				  Scope), used in the marketing, solicitation, or sale of a life insurance
				  contract containing an acceleration-of-life-insurance provision must clearly
				  and concisely disclose the following:
(1) the
				  illness, condition, care, or confinement necessary to trigger eligibility for
				  any acceleration-of-life-insurance benefit;
(2) the effect that an
				  acceleration-of-life-insurance benefit provision will have on the death benefit
				  and other values available under the life insurance contract; and
(3) the tax-related disclosures contained in
				  either subsection (a) or (b) of §
											4.1116 of this title (relating to
				  Disclosures Related to Tax Qualification of Benefits and Benefits' Effect on
				  Public Assistance), as appropriate, and the disclosure contained in subsection
				  (c) of §4.1116, or disclosures substantially similar to these
				  disclosures.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 4 - LIFE AND ANNUITY › Subchapter K - STANDARDS FOR ACCELERATION-OF-LIFE-INSURANCE BENEFITS FOR INDIVIDUAL AND GROUP POLICIES AND RIDERS › Section 4.1114 - Requirements for Acceleration-of-Life-Insurance Benefits That Fund Long-Term Care Expenses

Current through Reg. 49, No. 28; July 12, 2024
When a life insurance contract provides for payment of
					 long-term care expenses funded through an acceleration-of-life-insurance
					 benefit provision, the long-term care provisions of the contract must meet the
					 following requirements of Chapter 3, Subchapter Y of this title (relating to
					 Standards for Long-Term Care Insurance, Non-Partnership and Partnership
					 Long-Term Care Insurance Coverage Under Individual and Group Policies and
					 Annuity Contracts, and Life Insurance Policies that Provide Long-Term Care
					 Benefits Within the Policy):
(1) terms
				  must be defined consistently with §
										3.3804 of this title (relating to
				  Definitions);
(2) definitions and
				  descriptions of providers must be consistent with the requirements of §
										3.3812 of this title (relating to
				  Policy Standards for Provider);
(3)
				  to the extent that the acceleration-of-life-insurance provisions provide for
				  payment of home health or adult day care expenses, such provisions must meet
				  applicable standards contained in §
										3.3815 of this title (relating to
				  Standards for Home Health and Adult Day Care Benefits);
(4) conditions triggering eligibility for
				  benefits must comply with §
										3.3818 of this title (relating to
				  Standards for Eligibility for Benefits); and
(5) to the extent that the
				  acceleration-of-life-insurance benefit is intended to fund long-term care
				  expenses that will qualify for favorable tax treatment under federal law, the
				  long-term care provisions of the contract must further comply with the
				  provisions of §
										4.1115 of this title (relating to
				  Requirements for Benefits Represented to Be Qualified for Favorable Federal Tax
				  Treatment) that are applicable to expenses paid for a "qualified long-term care
				  illness," as defined in §4.1115, and any additional federal requirements
				  for favorable tax treatment.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 4 - LIFE AND ANNUITY › Subchapter L - INSURANCE SOLD IN CONNECTION WITH PREPAID FUNERAL CONTRACTS › Section 4.1201 - Introduction to Joint Memorandum of Understanding

Current through Reg. 49, No. 28; July 12, 2024
(a) Occupations Code §
										651.159, concerning
				  Memorandum of Understanding: Prepaid Funeral Services, mandates the Texas
				  Department of Insurance, the Texas Funeral Service Commission, and the Texas
				  Department of Banking to adopt by rule a joint memorandum of understanding
				  relating to prepaid funeral services and transactions that:
(1) outlines the responsibilities of each
				  agency in regulating these services and transactions;
(2) establishes procedures to be used by each
				  agency in referring complaints to one of the other agencies;
(3) establishes procedures to be used by each
				  agency in investigating complaints;
(4) establishes procedures to be used by each
				  agency in notifying the other agencies of a complaint or of the investigation
				  of a complaint;
(5) describes
				  actions the agencies regard as deceptive trade practices;
(6) specifies the information the agencies
				  provide consumers and when that information is to be provided; and
(7) sets the administrative penalties each
				  agency imposes for violations.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 4 - LIFE AND ANNUITY › Subchapter O - VARIABLE LIFE INSURANCE › Section 4.1503 - 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 life insurance business in this
				  state; and
(B) after having
				  complied with the provisions of Insurance Code Chapter 1152, concerning
				  Separate Accounts, Variable Contracts, and Related Products, 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 contract holders 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 4 - LIFE AND ANNUITY › Subchapter O - VARIABLE LIFE INSURANCE › Section 4.1504 - 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 under 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 that are to be attached to and made a part of
				  the contract and that relate to the variable nature of the contract, must be
				  filed with the commissioner and approved or exempted, as applicable, by the
				  commissioner before delivery or issuance for delivery in this state.
(A) Each variable life contract, rider,
				  endorsement, and application must be filed in accordance with Chapter 3,
				  Subchapter A, of this title (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, concerning Standard Nonforfeiture Law for Life Insurance, 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 that are optional to the contract holder. 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 that 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 4 - LIFE AND ANNUITY › Subchapter O - VARIABLE LIFE INSURANCE › Section 4.1506 - 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 under Insurance Code Chapter 1152,
				  concerning Separate Accounts, Variable Contracts, and Related Products.
(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
				  before 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;
(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 4 - LIFE AND ANNUITY › Subchapter O - VARIABLE LIFE INSURANCE › Section 4.1507 - 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 must deliver to the applicant for such
					 contract and obtain a written acknowledgment of receipt from such applicant
					 coincident with or before the execution of the application, the following
					 information. The requirements of this section will 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., that 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
				  how the variable benefits will reflect the investment experience of the
				  separate account and the factors that affect such variation. Such explanation
				  must include notices of the provision required by §
										4.1504(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 how
				  the operations of the separate account are intended to be conducted;
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 4 - LIFE AND ANNUITY › Subchapter O - VARIABLE LIFE INSURANCE › Section 4.1508 - Application

Current through Reg. 49, No. 28; July 12, 2024
The application for a variable life contract must
					 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); and
(3) questions
				  designed to elicit information that 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 4 - LIFE AND ANNUITY › Subchapter O - VARIABLE LIFE INSURANCE › Section 4.1509 - Reports to Contract Holders

Current through Reg. 49, No. 28; July 12, 2024
Any insurer delivering or issuing for delivery in this
					 state any variable life contracts must mail to each variable life insurance
					 contract holder at their 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 under §
										4.1504(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 in the statement is computed
				  as of a date not more than 60 days before the mailing of such notice. This
				  statement must state that, in accordance with the investment experience of the
				  separate account, the cash surrender values and the variable death benefit may
				  increase or decrease, and must prominently identify any value described in the
				  statement that may be recomputed before 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 must 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 4 - LIFE AND ANNUITY › Subchapter O - VARIABLE LIFE INSURANCE › Section 4.1510 - Separability

Current through Reg. 49, No. 28; July 12, 2024
If any provision of this chapter (relating to Life -
					 Variable Life Insurance) or the application of such provisions 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 will not be affected.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 4 - LIFE AND ANNUITY › Subchapter P - REQUIRED REINSTATEMENT RELATING TO MENTAL INCAPACITY OF THE INSURED FOR INDIVIDUAL LIFE POLICIES WITHOUT NONFORFEITURE BENEFITS › Section 4.1602 - Applicability

Current through Reg. 49, No. 28; July 12, 2024
This subchapter applies to all individual life policies
					 that do not provide nonforfeiture benefits issued to Texas residents by
					 insurers licensed in this state, including stipulated premium companies and
					 fraternal benefit societies, that lapse due to the mental incapacity of the
					 insured and that qualify for reinstatement under the eligibility requirements
					 set forth in §
										4.1605 of this title (relating to
					 Eligibility Requirements).
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 4 - LIFE AND ANNUITY › Subchapter P - REQUIRED REINSTATEMENT RELATING TO MENTAL INCAPACITY OF THE INSURED FOR INDIVIDUAL LIFE POLICIES WITHOUT NONFORFEITURE BENEFITS › Section 4.1603 - Severability

Current through Reg. 49, No. 28; July 12, 2024
Where any term or section of this subchapter is determined
					 by a court of competent jurisdiction to be inconsistent with the statutes of
					 this state or to be unconstitutional, the remaining terms and provisions of
					 this subchapter remain in effect.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 4 - LIFE AND ANNUITY › Subchapter P - REQUIRED REINSTATEMENT RELATING TO MENTAL INCAPACITY OF THE INSURED FOR INDIVIDUAL LIFE POLICIES WITHOUT NONFORFEITURE BENEFITS › Section 4.1604 - 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) Commissioner--The
				  commissioner of insurance.
(2)
				  Department--The Texas Department of Insurance.
(3) Insured--The person whose life is insured
				  under the policy. For purposes of this subchapter, the insured is the owner,
				  unless the insured and owner are different parties as set forth in the
				  policy.
(4) Mental incapacity
				  --Lacking the ability, based on reasonable medical judgment, to understand and
				  appreciate the nature and consequences of a decision regarding failure to pay a
				  premium when due and the ability to reach an informed decision in the
				  matter.
(5) Owner--The person who
				  has all the rights and all the responsibilities of the policy.
(6) Policyholder--The owner of the
				  policy.
(7) Proof of mental
				  incapacity--The clinical diagnosis of a physician licensed in this state and
				  qualified to make the diagnosis.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 4 - LIFE AND ANNUITY › Subchapter P - REQUIRED REINSTATEMENT RELATING TO MENTAL INCAPACITY OF THE INSURED FOR INDIVIDUAL LIFE POLICIES WITHOUT NONFORFEITURE BENEFITS › Section 4.1605 - Eligibility Requirements

Current through Reg. 49, No. 28; July 12, 2024
An eligible policy that is subject to this subchapter must
					 be reinstated, without evidence of insurability, on payment of past due
					 premiums and interest if it meets the following requirements:
(1) it has been in force continuously for at
				  least five years immediately before the date of lapse;
(2) all premiums have been paid during such
				  period, or within the grace period;
(3) there is a subsequent unintentional
				  default in premium payments caused by the mental incapacity of the insured;
				  and
(4) proof and request for
				  reinstatement are submitted within one year from the date of lapse.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 4 - LIFE AND ANNUITY › Subchapter P - REQUIRED REINSTATEMENT RELATING TO MENTAL INCAPACITY OF THE INSURED FOR INDIVIDUAL LIFE POLICIES WITHOUT NONFORFEITURE BENEFITS › Section 4.1606 - Payment of Past Due Premiums

Current through Reg. 49, No. 28; July 12, 2024
The insurer may require, as a condition of reinstatement,
					 payment of past due premiums, plus interest at a rate not to exceed 6.0% per
					 year.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 4 - LIFE AND ANNUITY › Subchapter P - REQUIRED REINSTATEMENT RELATING TO MENTAL INCAPACITY OF THE INSURED FOR INDIVIDUAL LIFE POLICIES WITHOUT NONFORFEITURE BENEFITS › Section 4.1609 - Notification and Disclosure Requirements

Current through Reg. 49, No. 28; July 12, 2024
(a)
				  The insurer is required to send notice of the conditions set forth in this
				  subchapter under which the policy may qualify for reinstatement due to the
				  mental incapacity of the insured. The notice must be sent to the owner of any
				  individual life policy that does not provide nonforfeiture benefits if the
				  policy is in force, renewed, or issued on or after September 1, 1995. The
				  notice required to be provided by this subsection must be provided within 90
				  days following lapse of an eligible policy.
(b) For all policies issued on or after
				  September 1, 1995, disclosure of the conditions set forth in this subchapter
				  under which the policy may qualify for reinstatement due to the mental
				  incapacity of the insured may be made by incorporating the language of §
										4.1613 of this title (relating to
				  Notice and Disclosure Form), either in the policy or in an endorsement attached
				  to the policy, in lieu of the notice requirements set forth in subsection (a)
				  of this section.
(c) The notice
				  required to be provided by this subsection will be deemed to be in compliance
				  if mailed by first class mail to the last known address of the policyholder or
				  if contained in the policy or included as an endorsement to the
				  policy.
(d) The notice required by
				  this subsection must be provided in the form set forth in §
										4.1613 of this title.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 4 - LIFE AND ANNUITY › Subchapter P - REQUIRED REINSTATEMENT RELATING TO MENTAL INCAPACITY OF THE INSURED FOR INDIVIDUAL LIFE POLICIES WITHOUT NONFORFEITURE BENEFITS › Section 4.1610 - Reinstatement Procedures

Current through Reg. 49, No. 28; July 12, 2024
(a) The insurer
				  must accept a request for reinstatement and proof of mental incapacity that is
				  filed by:
(1) the insured, or the owner, if
				  the insured and owner are not the same party;
(2) the legal guardian of the
				  insured;
(3) other legal
				  representative of the insured; or
(4) the legal representative of the estate of
				  the insured.