Tex.
Ins. Code Section 1105.003
Exemptions
(a)
This chapter does not apply to:(1)
reinsurance;(2)
group insurance;(3)
pure endowment;(4)
an annuity or reversionary annuity contract;(5)
a term policy of uniform amount that:(A)
does not provide guaranteed nonforfeiture or endowment benefits or renewal of the policy;(B)
has a term of 20 years or less that expires before the insured reaches 71 years of age; and(C)
has uniform premiums that are payable during the entire term of the policy;(6)
a term policy of decreasing amount:(A)
that does not provide guaranteed nonforfeiture or endowment benefits; and(B)
on which each adjusted premium, computed as specified by Subchapter B or D, is less than the adjusted premium computed in that manner for a term policy of uniform amount, or a renewal of a term policy of uniform amount, that:(i)
does not provide guaranteed nonforfeiture or endowment benefits;(ii)
is issued at the same age and for the same initial amount of insurance;(iii)
has a term of 20 years or less and expires before the insured reaches 71 years of age; and(iv)
has uniform premiums that are payable during the entire term of the policy;(7)
a policy:(A)
that does not provide guaranteed nonforfeiture or endowment benefits; and(B)
for which no cash surrender value, if any, or present value of any paid-up nonforfeiture benefit, at the beginning of any policy year, computed as specified by Section 1105.007 (Computation of Cash Surrender Value Following Default), 1105.008 (Computation of Cash Surrender Value on Surrender Following Policy Anniversary), 1105.009 (Computation of Paid-up Nonforfeiture Benefits), Subchapter B, or Subchapter D, exceeds 2-1/2 percent of the amount of insurance at the beginning of the same policy year;(8)
a policy delivered outside this state through an agent or other representative of the company that issued the policy; or(9)
a policy that:(A)
does not provide for cash values or nonforfeiture values; and(B)
meets the requirements of Section 884.403 (Policy Requirements)(b).(b)
For purposes of determining the applicability of this chapter, the age at expiry of a joint term life insurance policy is the age at expiry of the oldest insured life on that date.
Source:
Section 1105.003 — Exemptions, https://statutes.capitol.texas.gov/Docs/IN/htm/IN.1105.htm#1105.003 (accessed May 11, 2024).
