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 CC - STANDARDS FOR ACCELERATION-OF-LIFE-INSURANCE BENEFITS FOR INDIVIDUAL AND GROUP POLICIES AND RIDERS › Section 3.4307 - 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 §
										3.4306(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 shall not be unjust and shall 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 shall
					 not be less than the minimum cash values required by the Insurance Code Chapter
					 1105, 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 the 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 3 - LIFE, ACCIDENT, AND HEALTH INSURANCE AND ANNUITIES › Subchapter CC - STANDARDS FOR ACCELERATION-OF-LIFE-INSURANCE BENEFITS FOR INDIVIDUAL AND GROUP POLICIES AND RIDERS › Section 3.4308 - 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 §
										3.4306(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 3 - LIFE, ACCIDENT, AND HEALTH INSURANCE AND ANNUITIES › Subchapter CC - STANDARDS FOR ACCELERATION-OF-LIFE-INSURANCE BENEFITS FOR INDIVIDUAL AND GROUP POLICIES AND RIDERS › Section 3.4309 - 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 shall be disregarded in ascertaining nonforfeiture benefits under the
					 Insurance Code Chapter 1105.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 3 - LIFE, ACCIDENT, AND HEALTH INSURANCE AND ANNUITIES › Subchapter CC - STANDARDS FOR ACCELERATION-OF-LIFE-INSURANCE BENEFITS FOR INDIVIDUAL AND GROUP POLICIES AND RIDERS › Section 3.4310 - Calculation of Reserves

Current through Reg. 49, No. 28; July 12, 2024
(a) Reserves for an
				  acceleration-of-life-insurance benefit shall be based on tables of disablement,
				  morbidity, or mortality appropriate for determining liability for the benefits
				  provided. Such disablement or morbidity tables shall be certified as
				  appropriate by a member of the American Academy of Actuaries and approved by
				  the Texas Department of Insurance under the Insurance Code §
										425.058(k)
				  and §
										425.069.
				  Reserves for the death benefits or other supplementary benefits provided by a
				  life insurance contract which includes an acceleration-of-life-insurance
				  benefit shall be calculated disregarding such benefit, using mortality and
				  interest rates as provided in the Insurance Code Chapter 425. The basis of
				  reserves for any life insurance contract which contains an
				  acceleration-of-life-insurance benefit provision shall 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 §
										3.4306(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 3 - LIFE, ACCIDENT, AND HEALTH INSURANCE AND ANNUITIES › Subchapter CC - STANDARDS FOR ACCELERATION-OF-LIFE-INSURANCE BENEFITS FOR INDIVIDUAL AND GROUP POLICIES AND RIDERS › Section 3.4311 - 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 the 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 shall 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 3 - LIFE, ACCIDENT, AND HEALTH INSURANCE AND ANNUITIES › Subchapter CC - STANDARDS FOR ACCELERATION-OF-LIFE-INSURANCE BENEFITS FOR INDIVIDUAL AND GROUP POLICIES AND RIDERS › Section 3.4312 - 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 shall be subject to the notice
				  and disclosure requirements in paragraphs (1)-(5) of this section.
(1) Except as otherwise provided in this
				  paragraph, the face of every such life insurance contract shall 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
				  shall be appropriately modified for contracts which 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 shall be descriptive of the coverage
				  provided and shall 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 shall 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 shall 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 §
											3.4316
				  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 §3.4316, 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 §3.4316.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 3 - LIFE, ACCIDENT, AND HEALTH INSURANCE AND ANNUITIES › Subchapter CC - STANDARDS FOR ACCELERATION-OF-LIFE-INSURANCE BENEFITS FOR INDIVIDUAL AND GROUP POLICIES AND RIDERS › Section 3.4313 - 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
				  shall 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;
(3) the tax-related disclosures contained in
				  either subsection (a) or (b) of §
											3.4316
				  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 §3.4316, or disclosures substantially
				  similar to these disclosures.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 3 - LIFE, ACCIDENT, AND HEALTH INSURANCE AND ANNUITIES › Subchapter CC - STANDARDS FOR ACCELERATION-OF-LIFE-INSURANCE BENEFITS FOR INDIVIDUAL AND GROUP POLICIES AND RIDERS › Section 3.4314 - 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 Subchapter Y of this chapter (relating to Standards
					 for Long-Term Care Insurance Coverage under Individual and Group
					 Policies):
(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 §
										3.4315
				  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 §3.4315, and
				  any additional federal requirements for favorable tax treatment.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 3 - LIFE, ACCIDENT, AND HEALTH INSURANCE AND ANNUITIES › Subchapter CC - STANDARDS FOR ACCELERATION-OF-LIFE-INSURANCE BENEFITS FOR INDIVIDUAL AND GROUP POLICIES AND RIDERS › Section 3.4317 - Effective Date

Current through Reg. 49, No. 28; July 12, 2024
This subchapter, as adopted by the commissioner, applies to
					 all life insurance contracts marketed, delivered, issued for delivery, or
					 renewed in Texas on or after the effective date of the subchapter, which will
					 be 20 days after the date the adopted subchapter is filed with the Office of
					 the Secretary of State.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 3 - LIFE, ACCIDENT, AND HEALTH INSURANCE AND ANNUITIES › Subchapter EE - VALUATION OF LIFE INSURANCE POLICIES › Section 3.4501 - Purpose

Current through Reg. 49, No. 28; July 12, 2024
(a) The purpose of this subchapter is to
				  provide:
(1) Tables of select mortality
				  factors and rules for their use;
(2) Rules concerning a minimum standard for
				  the valuation of plans with nonlevel premiums or benefits; and
(3) Rules concerning a minimum standard for
				  the valuation of plans with secondary guarantees.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 3 - LIFE, ACCIDENT, AND HEALTH INSURANCE AND ANNUITIES › Subchapter EE - VALUATION OF LIFE INSURANCE POLICIES › Section 3.4502 - Adoption of Tables of Select Mortality Factors

Current through Reg. 49, No. 28; July 12, 2024
The six tables of select mortality factors adopted in this
					 section are from the NAIC model regulation titled "Valuation of Life Insurance
					 Policies Model Regulation" which was adopted by the NAIC on March 8, 1999. The
					 six tables of base select mortality factors include: male aggregate, male
					 nonsmokers, male smoker, female aggregate, female nonsmoker, and female smoker.
					 These tables apply to both age last birthday and age nearest birthday mortality
					 tables.
Attached
					 Graphic
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 3 - LIFE, ACCIDENT, AND HEALTH INSURANCE AND ANNUITIES › Subchapter EE - VALUATION OF LIFE INSURANCE POLICIES › Section 3.4503 - Applicability

Current through Reg. 49, No. 28; July 12, 2024
This subchapter applies to all life insurance policies,
					 with or without nonforfeiture values, issued on or after January 1, 2000, and
					 before January 1, 2017, subject to the following exceptions in paragraph (1) of
					 this section and conditions in paragraph (2) of this section. For all life
					 insurance policies, with or without nonforfeiture values, issued on or after
					 January 1, 2017, the requirements of the valuation manual adopted under
					 Insurance Code Chapter 425, Subchapter B, apply.
(1) Exceptions.
(A) This subchapter shall not apply to any
				  individual life insurance policy issued on or after the effective date of this
				  subchapter if the policy is issued in accordance with and as a result of the
				  exercise of a reentry provision contained in the original life insurance policy
				  of the same or greater face amount, issued before the effective date of this
				  subchapter, that guarantees the premium rates of the new policy. This
				  subchapter also shall not apply to subsequent policies issued as a result of
				  the exercise of such a provision, or a derivation of the provision, in the new
				  policy.
(B) This subchapter shall
				  not apply to any universal life policy that meets all the following
				  requirements:
(i) secondary guarantee period,
				  if any, is five years or less;
(ii)
				  specified premium for the secondary guarantee period is not less than the net
				  level reserve premium for the secondary guarantee period based on the 1980 CSO
				  valuation tables and the applicable valuation interest rate; and
(iii) the initial surrender charge is not
				  less than 100% of the first year annualized specified premium for the secondary
				  guarantee period.
(C)
				  This subchapter shall not apply to any variable life insurance policy that
				  provides for life insurance, the amount or duration of which varies according
				  to the investment experience of any separate account or accounts.
(D) This subchapter shall not apply to any
				  variable universal life insurance policy that provides for life insurance, the
				  amount or duration of which varies according to the investment experience of
				  any separate account or accounts.
(E) This subchapter shall not apply to a
				  group life insurance certificate unless the certificate provides for a stated
				  or implied schedule of maximum gross premiums required in order to continue
				  coverage in force for a period in excess of one year.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 3 - LIFE, ACCIDENT, AND HEALTH INSURANCE AND ANNUITIES › Subchapter EE - VALUATION OF LIFE INSURANCE POLICIES › Section 3.4505 - General Calculation Requirements for Basic Reserves and Premium Deficiency Reserves

Current through Reg. 49, No. 28; July 12, 2024
(a) At the election
				  of the company for any one or more specified plans of life insurance, the
				  minimum mortality standard for basic reserves may be calculated using the 1980
				  CSO valuation tables with select mortality factors (or any other valuation
				  mortality table adopted by the NAIC after the effective date of this subchapter
				  and promulgated by regulation by the commissioner for this purpose). If select
				  mortality factors are elected, they may be:
(1) the ten-year select mortality factors
				  incorporated in the Insurance Code Chapter 425, Subchapter B, The Standard
				  Valuation Law;
(2) the select
				  mortality factors adopted in §
											3.4502
				  of this subchapter (relating to Adoption of Tables of Select Mortality
				  Factors); or
(3) any other table of
				  select mortality factors adopted by the NAIC after the effective date of this
				  regulation and promulgated by regulation by the commissioner for the purpose of
				  calculating basic reserves.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 3 - LIFE, ACCIDENT, AND HEALTH INSURANCE AND ANNUITIES › Subchapter EE - VALUATION OF LIFE INSURANCE POLICIES › Section 3.4506 - Calculation of Minimum Valuation Standard for Policies with Guaranteed Nonlevel Gross Premiums or Guaranteed Nonlevel Benefits (Other than Universal Life Policies)

Current through Reg. 49, No. 28; July 12, 2024
(a) Basic reserves.
				  Basic reserves must be calculated as the greater of the segmented reserves and
				  the unitary reserves. Both the segmented reserves and the unitary reserves for
				  any policy must use the same valuation mortality table and selection factors.
				  At the option of the insurer, in calculating segmented reserves and net
				  premiums, either one of the two adjustments described in paragraphs (1) or (2)
				  of this subsection may be made.
(1) An
				  insurer may use the adjustments described in this paragraph.
(A) Treat the unitary reserve, if greater
				  than zero, applicable at the end of each segment as a pure endowment;
				  and
(B) subtract the unitary
				  reserve, if greater than zero, applicable at the beginning of each segment from
				  the present value of guaranteed life insurance and endowment benefits for each
				  segment.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 3 - LIFE, ACCIDENT, AND HEALTH INSURANCE AND ANNUITIES › Subchapter EE - VALUATION OF LIFE INSURANCE POLICIES › Section 3.4507 - Calculation of Minimum Valuation Standard for Flexible Premium and Fixed Premium Universal Life Insurance Policies That Contain Provisions Resulting in the Ability of a Policyowner to Keep a Policy in Force Over a Secondary Guarantee Period

Current through Reg. 49, No. 28; July 12, 2024
(a) General.
(1) Policies with a secondary guarantee
				  include:
(A) a policy with a guarantee that
				  the policy will remain in force at the original schedule of benefits, subject
				  only to the payment of specified premiums;
(B) a policy in which the minimum premium at
				  any duration is less than the corresponding one year valuation premium,
				  calculated using the maximum valuation interest rate and the 1980 CSO valuation
				  tables with or without ten-year select mortality factors, or any other table
				  adopted after the effective date of this regulation by the NAIC and promulgated
				  by regulation by the commissioner for this purpose; or
(C) a policy with any combination of
				  subparagraphs (A) and (B) of this paragraph.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 3 - LIFE, ACCIDENT, AND HEALTH INSURANCE AND ANNUITIES › Subchapter EE - VALUATION OF LIFE INSURANCE POLICIES › Section 3.4508 - Effective Date

Current through Reg. 49, No. 28; July 12, 2024
This subchapter is effective January 1,
					 2000.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 3 - LIFE, ACCIDENT, AND HEALTH INSURANCE AND ANNUITIES › Subchapter EE - VALUATION OF LIFE INSURANCE POLICIES › Section 3.4509 - 2001 CSO Mortality Table

Current through Reg. 49, No. 28; July 12, 2024
The 2001 CSO Mortality Table shall be used for purposes of
					 this subchapter pursuant to the requirements of §§
										3.9101-
					 3.9106 of
					 this title (relating to 2001 CSO Mortality Table).
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 3 - LIFE, ACCIDENT, AND HEALTH INSURANCE AND ANNUITIES › Subchapter FF - CREDIT LIFE AND CREDIT ACCIDENT AND HEALTH INSURANCE › Division 1 - GENERAL PROVISIONS › Section 3.5001 - Authority and Scope

Current through Reg. 49, No. 28; July 12, 2024
This subchapter is adopted pursuant to the authority
						provided in Insurance Code, Chapter 1153. This subchapter applies to all life
						insurance and all accident and health insurance sold in connection with loans
						and other credit transactions, the premium for which is charged to or paid for
						in whole or in part either directly or indirectly by the debtor, regardless of
						the nature, type, or plan of the credit insurance coverage or premium payment
						system, which shall include any such credit insurance which purports to be on a
						"cost free," "no cost," "give away," or other "no charge" basis insofar as a
						debtor is concerned, but shall not apply to:
(1) insurance issued or sold in connection
					 with a loan or other credit transaction of more than 10 years'
					 duration;
(2) insurance issued or
					 sold in connection with a credit transaction that is:
(A) secured by a first mortgage or deed of
					 trust; and
(B) made to finance the
					 purchase of commercial real property or the construction of or improvement to a
					 building other than a single family dwelling on the real property if the
					 purchase, construction, or improvement is secured by a lien on the real
					 property, or to refinance a credit transaction made for those purposes;
					 or
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 3 - LIFE, ACCIDENT, AND HEALTH INSURANCE AND ANNUITIES › Subchapter FF - CREDIT LIFE AND CREDIT ACCIDENT AND HEALTH INSURANCE › Division 1 - GENERAL PROVISIONS › Section 3.5002 - Definitions

Current through Reg. 49, No. 28; July 12, 2024
The following words and terms, when used in this chapter,
						have the following meanings unless the context clearly indicates
						otherwise.
(1) Account--The aggregate
					 credit life insurance or credit accident and health coverage for a single class
					 of business written through a single creditor, or written through more than one
					 creditor under common control or ownership, by the insurer, whether coverage is
					 written on a group or individual policy basis.
(2) Actual earned premium--The total of all
					 premiums earned at the premium rates actually charged and in force during the
					 experience period.
(3) Approved
					 deviation by case--A premium rate or premium rate schedule adjusted in
					 accordance with the deviation procedures set out in Division 6 of this
					 subchapter (relating to Deviation Procedures).
(4) Automatic deviation--A premium rate that
					 is filed pursuant to Insurance Code §
											1153.105.
(5) Average number of life years--The average
					 of the number of group certificates or individual policies in force each month
					 during the experience period (without regard to multiple coverage) times the
					 number of years in the experience period.
(6) Case--Either a "single account case" or a
					 "multiple account case" as follows:
(A)
					 Single account case--An account that is at least 25% credible or, at the option
					 of the insurer, any higher percentage as determined by the credibility table
					 set out in §
												3.5603 of this
					 title (relating to Credibility Table). An insurer exercising this option must
					 in writing notify, and obtain written approval of the commissioner, of the
					 credibility factor it will use to define a "single account case." Once the
					 commissioner is so notified, the credibility factor will remain in effect for
					 the insurer until a different election has been filed in writing by the insurer
					 and approved by the commissioner.
(B) Multiple account case--A combination of
					 all the insurer's accounts of the same class of business with experience in
					 this state, excluding all single account cases of the insurer defined in
					 subparagraph (A) of this paragraph, or with the approval of the commissioner;
					 "multiple account case" also means two or more accounts of the insurer, having
					 like underwriting characteristics which are combined by the insurer for premium
					 rating purposes, excluding all "single account cases" as defined in
					 subparagraph (A) of this paragraph and other "multiple account cases" defined
					 previously.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 3 - LIFE, ACCIDENT, AND HEALTH INSURANCE AND ANNUITIES › Subchapter FF - CREDIT LIFE AND CREDIT ACCIDENT AND HEALTH INSURANCE › Division 2 - APPLICATIONS AND POLICIES › Section 3.5101 - Debtor's Choice of Insurer

Current through Reg. 49, No. 28; July 12, 2024
When credit life or credit accident and health insurance
						is required as additional security for any indebtedness, the person processing
						the indebtedness transaction shall advise the debtor prior to completion of the
						transaction of the debtor's right to furnish the required amount of insurance
						through existing policies of insurance owned or controlled by the debtor or to
						procure the required coverage from any insurer authorized to transact insurance
						business within this state.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 3 - LIFE, ACCIDENT, AND HEALTH INSURANCE AND ANNUITIES › Subchapter FF - CREDIT LIFE AND CREDIT ACCIDENT AND HEALTH INSURANCE › Division 2 - APPLICATIONS AND POLICIES › Section 3.5102 - Delivery to Debtor

Current through Reg. 49, No. 28; July 12, 2024
All credit life insurance and credit accident and health
						insurance shall be evidenced by an individual policy, or in the case of group
						insurance by a certificate of insurance, which in either case shall be
						delivered to the debtor.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 3 - LIFE, ACCIDENT, AND HEALTH INSURANCE AND ANNUITIES › Subchapter FF - CREDIT LIFE AND CREDIT ACCIDENT AND HEALTH INSURANCE › Division 2 - APPLICATIONS AND POLICIES › Section 3.5104 - Benefits and Refunds

Current through Reg. 49, No. 28; July 12, 2024
(a) Refunds will be
					 due as follows.
(1) If an accident and health
					 insurance claim is in progress at the time of discharge of the indebtedness,
					 such claim shall continue during the originally scheduled term of insurance, as
					 if there had been no such discharge of indebtedness. Upon the termination of
					 such continuing claim within the originally scheduled term of insurance, a
					 refund shall be made of any then unearned premium. If, however, the
					 indebtedness is prepaid by a lump sum disability benefit or if the insurer
					 elects, during the pendency of an accident and health insurance claim, to
					 prepay and discharge the full remaining balance due thereon immediately in one
					 payment, the accident and health premium paid or then due and payable to the
					 insurer is earned and no refund is required. However, in such instances, the
					 credit life premium is not fully deemed earned and shall be refunded in
					 accordance with §§
												3.5901-3.5906
					 of this title (relating to Premium Refunds).
(2) In the case of termination of credit life
					 insurance for all plans in which death benefits are not payable due to
					 exclusions in the policy, except for open-end coverages, the insurer will
					 refund the gross premium paid for credit life insurance and the unearned credit
					 accident and health premium in accordance with §§
												3.5901-3.5906
					 of this title (relating to Premium Refunds). For open-end coverages, the
					 insurer will refund the total amount of credit life premium charged or
					 collected since the date of death along with the unearned credit accident and
					 health premium in accordance with §§
												3.5901-3.5906
					 of this title.
(3) In the case of
					 termination of credit life insurance by payment of death benefits, the life
					 insurance premiums paid or then due and payable to the insurer are deemed
					 earned and no refund thereof is required; however, in such instances the credit
					 accident and health insurance premium is not fully deemed earned and shall be
					 refunded to the second beneficiary in accordance with §§
												3.5901-3.5906
					 of this title (relating to Premium Refunds).
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 3 - LIFE, ACCIDENT, AND HEALTH INSURANCE AND ANNUITIES › Subchapter FF - CREDIT LIFE AND CREDIT ACCIDENT AND HEALTH INSURANCE › Division 2 - APPLICATIONS AND POLICIES › Section 3.5105 - Application Provisions

Current through Reg. 49, No. 28; July 12, 2024
(a) If said
					 individual policy or group certificate of insurance is not delivered to the
					 debtor at the time the indebtedness is incurred, a copy of the application for
					 such individual policy or a notice of such proposed group insurance coverage
					 shall be delivered to the debtor at the time such indebtedness is incurred.
					 However, when insurance is voluntarily applied for more than 30 days later by
					 the debtor, and such application for insurance is a transaction separate and
					 apart from the credit transaction and is not a requirement of the creditor, and
					 in the absence of a prior identifiable insurance charge to the debtor in the
					 loan involved, a copy of such application or such notice conforming to these
					 sections shall be delivered to the debtor when executed.
(b) Every application, enrollment form, or
					 notice of proposed insurance shall provide for the signature of the debtor and
					 shall set forth:
(1) the name and home office
					 mailing address of the insurer, and on notices of proposed group insurance,
					 debtor's applications for group insurance or enrollment forms for group
					 insurance, an identification of the master policy;
(2) the name and age of the debtor or
					 debtors;
(3) the full amount of
					 premium or the total identifiable insurance charge, if any, to the debtor,
					 separately for credit life and for credit accident and health
					 insurance;
(4) the amount of
					 coverage;
(5) the effective date of
					 insurance, if accepted by the insurer, and the termination date of insurance
					 which shall not extend more than 15 days beyond the scheduled maturity date of
					 the indebtedness except when extended without additional cost to the
					 debtor;
(6) a brief description of
					 the coverage applied for; and
(7) a
					 statement that upon acceptance of the insurance by the insurer and not later
					 than 45 days after the date upon which the indebtedness is incurred (or, if the
					 indebtedness is an open-end transaction, not later than 30 days from the date
					 of application for coverage) the insurer shall cause the individual policy or
					 the group certificate of insurance to be delivered to the debtor, and that if
					 the insurance is not accepted by the insurer or by a substituted insurer as
					 authorized by Insurance Code §
												1153.158,
					 then any insurance charge made for such insurance shall be fully refunded and
					 the creditor shall immediately give written notice to such debtor and shall
					 promptly make an appropriate credit to the debtor's account in accordance with
					 Insurance Code §
												1153.203.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 3 - LIFE, ACCIDENT, AND HEALTH INSURANCE AND ANNUITIES › Subchapter FF - CREDIT LIFE AND CREDIT ACCIDENT AND HEALTH INSURANCE › Division 2 - APPLICATIONS AND POLICIES › Section 3.5108 - Termination of Coverage

Current through Reg. 49, No. 28; July 12, 2024
(a) If a debtor is
					 covered by a group credit insurance policy providing for the payment of single
					 premiums to the insurer, provision shall be made by the insurer that in the
					 event of termination of the group policy for any reason, insurance coverage
					 with respect to any debtor then insured under such policy shall be continued
					 for the entire period for which the single premium has been paid, subject to
					 the provisions of the policy relative to early termination of a debtor's
					 insurance.
(b) If a debtor is
					 covered by a group credit insurance policy providing for payment of premiums to
					 the insurer on a monthly outstanding balance basis, then the policy shall
					 provide that, in the event of termination of such group policy for any reason,
					 the insured debtor shall be given written notice that coverage will continue
					 for 30 days from the date of such notice, except where replacement of the
					 coverage by the same or another insurer in the same or greater amount takes
					 place without interruption of coverage and a new certificate reflecting such
					 replacement coverage is delivered to such then insured debtor. The notice of
					 termination required in this subsection shall be given by the insurer or, at
					 the option of the insurer, by the creditor.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 3 - LIFE, ACCIDENT, AND HEALTH INSURANCE AND ANNUITIES › Subchapter FF - CREDIT LIFE AND CREDIT ACCIDENT AND HEALTH INSURANCE › Division 2 - APPLICATIONS AND POLICIES › Section 3.5109 - Interest on Premiums

Current through Reg. 49, No. 28; July 12, 2024
If the creditor adds identifiable insurance charges or
						premiums for credit insurance to the indebtedness, and any direct or indirect
						finance, carrying, credit, or service charge is made to the debtor on such
						insurance charges or premiums, the creditor must remit and the insurer shall
						collect on a single premium basis only for each debtor so insured. In any
						event, the charge to a debtor shall be of the same mode and in an amount not to
						exceed the insurer's charge.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 3 - LIFE, ACCIDENT, AND HEALTH INSURANCE AND ANNUITIES › Subchapter FF - CREDIT LIFE AND CREDIT ACCIDENT AND HEALTH INSURANCE › Division 2 - APPLICATIONS AND POLICIES › Section 3.5111 - Open-End Transaction Forms

Current through Reg. 49, No. 28; July 12, 2024
(a) The
					 group policy and certificate of insurance shall set forth that the debtor will
					 be furnished a statement each billing cycle (but not less frequently than
					 quarterly) which contains the following:
(1)
					 the amount of the debtor's insurance charge, shown separately for credit life
					 and credit accident and health insurance;
(2) the amount of the insured's indebtedness
					 to which the insurance charge rate was applied;
(3) the date the rate was applied;
(4) the period covered by such monthly
					 charge; and
(5) notification of any
					 rate change at least one billing cycle prior to the effective date of change.
					 If the change is mandated by other legal requirements to take effect prior to
					 the date of the next billing cycle, notice of any rate change must be given at
					 least 30 days prior to the effective date of the rate change; and
(6) notification of any pre-established
					 insurance termination date due to underwriting or eligibility
					 guidelines.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 3 - LIFE, ACCIDENT, AND HEALTH INSURANCE AND ANNUITIES › Subchapter FF - CREDIT LIFE AND CREDIT ACCIDENT AND HEALTH INSURANCE › Division 3 - FILING AND APPROVAL OF FORMS AND RATES › Section 3.5201 - Submission of Form and Rate Filings

Current through Reg. 49, No. 28; July 12, 2024
(a) Every
					 insurance company, when submitting a schedule of rates for automatic or
					 approved deviations from the presumptive premium rate, shall identify the rates
					 to be used with the policy form submitted for approval. The face page of every
					 form or schedule submitted to the commissioner, shall include with its
					 identifying form number the additional identification: "(3.53)" if the form is
					 an individual life and/or individual accident and health form and used only
					 within the scope of Insurance Code Chapter 1153; "(3.53 and 3.50)" if the form
					 is a group life and/or group accident and health form and used only within the
					 scope of Chapter 1153; "(3.53 R.A.)" or "(3.53 O.E.)" if the form is a credit
					 life and/or credit accident and health form and is written on open-end
					 transactions. The designations "(3.53 R.A.)" or "(3.53 O.E.)" may not be used
					 on forms or schedules providing insurance coverage on closed-end transactions.
					 The additional identification, as required by this subsection, will only be
					 used on credit life and/or credit accident and health insurance written under
					 the scope of Insurance Code, Chapter 1153.
(b) All form and rate filings are to be filed
					 in accordance with the requirements of Subchapter A of Chapter 3 of this title
					 (relating to Submission Requirements for Filings and Departmental Actions
					 Related to Such Filings.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 3 - LIFE, ACCIDENT, AND HEALTH INSURANCE AND ANNUITIES › Subchapter FF - CREDIT LIFE AND CREDIT ACCIDENT AND HEALTH INSURANCE › Division 3 - FILING AND APPROVAL OF FORMS AND RATES › Section 3.5202 - Reasonable Relation of Benefits to Premiums for Approved Deviations

Current through Reg. 49, No. 28; July 12, 2024
As the basic test of the reasonableness of the relation
						of benefits to the premium charges for approved deviations, to be applied
						separately by policy form number, it is hereby declared that the benefits of
						credit life insurance or credit accident and health insurance, individual or
						group, shall not be considered to be reasonable in relation to the premium
						charges, unless it can be reasonably anticipated that a loss ratio of "claims
						incurred" to "earned premiums" will, after the increase becomes effective, be
						no less than the following:
(1) Loss
					 Ratios For Class E Only:
(A) credit
					 life--43%;
(B) credit accident and
					 health:
(i) 46% for Plans 10 - 14 and 22 - 26
					 on the Presumptive Premium Rate Chart found at §
													3.5206
					 of this subchapter (relating to Presumptive Premium Rates); and
(ii) 44% for Plans 16 - 19 on the Presumptive
					 Premium Rate Chart found at §
													3.5206
					 of this subchapter.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 3 - LIFE, ACCIDENT, AND HEALTH INSURANCE AND ANNUITIES › Subchapter FF - CREDIT LIFE AND CREDIT ACCIDENT AND HEALTH INSURANCE › Division 3 - FILING AND APPROVAL OF FORMS AND RATES › Section 3.5203 - Earned Premiums

Current through Reg. 49, No. 28; July 12, 2024
"Earned premium" means the total gross premiums which
						become due the insurance company, without reduction of any kind, except for
						premiums refunded or adjusted on account of termination of coverage,
						appropriately adjusted for changes in unearned premium reserve calculated as
						follows:
(1) for single premium term
					 life coverage, by the single premium for the remaining term and benefits (rule
					 of anticipation);
(2) for single
					 premium uniformly decreasing disability insurance, by the mean of the "sum of
					 the digits" (rule of 78) and the pro-rata methods, or at the option of the
					 insurer, by the "rule of anticipation";
(3) for other coverages, the "rule of
					 anticipation"; and
(4) by another
					 method which produces substantially equal unearned premium reserves and is
					 approved by the commissioner of insurance.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 3 - LIFE, ACCIDENT, AND HEALTH INSURANCE AND ANNUITIES › Subchapter FF - CREDIT LIFE AND CREDIT ACCIDENT AND HEALTH INSURANCE › Division 3 - FILING AND APPROVAL OF FORMS AND RATES › Section 3.5204 - Claims Incurred

Current through Reg. 49, No. 28; July 12, 2024
"Claims incurred" means the liability resulting from the
						happening of the contingency insured against whether paid, reported, not
						reported or resisted on accounting dates, valued by date of occurrence and,
						without reduction for reinsurance, at amounts, excluding claims expenses,
						sufficient to discharge the company from all liability.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 3 - LIFE, ACCIDENT, AND HEALTH INSURANCE AND ANNUITIES › Subchapter FF - CREDIT LIFE AND CREDIT ACCIDENT AND HEALTH INSURANCE › Division 3 - FILING AND APPROVAL OF FORMS AND RATES › Section 3.5205 - Policies and Applications

Current through Reg. 49, No. 28; July 12, 2024
Any individual policy, application, group policy, group
						certificate of insurance, or notice of proposed insurance shall be in full
						compliance with the law and this subchapter. All certificates of insurance
						shall be reflective of and not in contradiction to the provisions of the group
						policy.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 3 - LIFE, ACCIDENT, AND HEALTH INSURANCE AND ANNUITIES › Subchapter FF - CREDIT LIFE AND CREDIT ACCIDENT AND HEALTH INSURANCE › Division 3 - FILING AND APPROVAL OF FORMS AND RATES › Section 3.5206 - Presumptive Premium Rates

Current through Reg. 49, No. 28; July 12, 2024
The following presumptive premium rates are adopted by
						the commissioner and shall be used on or after January 1, 2006.
Attached
						Graphic
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 3 - LIFE, ACCIDENT, AND HEALTH INSURANCE AND ANNUITIES › Subchapter FF - CREDIT LIFE AND CREDIT ACCIDENT AND HEALTH INSURANCE › Division 4 - PRESUMPTIVELY ACCEPTABLE RELATION OF CREDIT LIFE INSURANCE BENEFITS TO PREMIUMS › Section 3.5302 - Joint Credit Life Insurance

Current through Reg. 49, No. 28; July 12, 2024
(a) Joint lives,
					 for purposes of credit life insurance written under Insurance Code Chapter
					 1153, mean only spouses or business partners, and such persons must be jointly
					 and severally liable for repayment of the single indebtedness and be joint
					 signers of the instrument of indebtedness. Endorsers and guarantors are not
					 eligible for credit insurance coverage. Joint life coverage may not be written
					 covering more than two lives. Jointly indebted persons may not both be covered
					 separately at single life rates.
(b) Joint life rates may not be charged for
					 single life coverage.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 3 - LIFE, ACCIDENT, AND HEALTH INSURANCE AND ANNUITIES › Subchapter FF - CREDIT LIFE AND CREDIT ACCIDENT AND HEALTH INSURANCE › Division 4 - PRESUMPTIVELY ACCEPTABLE RELATION OF CREDIT LIFE INSURANCE BENEFITS TO PREMIUMS › Section 3.5304 - Premiums for Obligations Paid in Other Than Equal Monthly Installments

Current through Reg. 49, No. 28; July 12, 2024
Premiums and premium rates for insurance covering
						obligations payable in other than substantially equal monthly installments
						during the period of coverage shall be determined in a manner resulting in a
						rate not exceeding the mathematical equivalent of the foregoing
						rates.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 3 - LIFE, ACCIDENT, AND HEALTH INSURANCE AND ANNUITIES › Subchapter FF - CREDIT LIFE AND CREDIT ACCIDENT AND HEALTH INSURANCE › Division 4 - PRESUMPTIVELY ACCEPTABLE RELATION OF CREDIT LIFE INSURANCE BENEFITS TO PREMIUMS › Section 3.5305 - Conditions of Life Insurance Benefits

Current through Reg. 49, No. 28; July 12, 2024
The standards and principles for the application of
						presumptive rates established for credit life insurance are as follows.
(1) The credit life insurance contract may
					 require submission of the debtor's written and signed evidence of the debtor's
					 insurability or that the debtor be in gainful employment at the time the
					 insurance becomes effective, or both, on a form filed with and approved by the
					 commissioner of insurance, and that such contract contains no conditions for
					 validity of insurance more restrictive than contestability based on material
					 misrepresentation and no exclusions other than for suicide, nonscheduled
					 aircraft, and war or military service hazard. Such exclusions shall not remain
					 effective after termination of the contestable period. Employment or good
					 health may not be a condition precedent to the payment of claims unless the
					 insurer required the insured to sign an application which stated the applicant
					 was employed and in good health.
(2) Life insurance coverage is provided or
					 offered to all debtors regardless of age; or may contain, at the option of the
					 insurer, age restrictions making debtors ineligible for life coverage if they
					 are 65 or over at the time the indebtedness is incurred or debtors who will
					 have attained age 66 or over on the maturity date of the
					 indebtedness.