Tex.
Ins. Code Section 1110.007
Notice to Policyholder
(a)
In this section, “policyholder” includes the owner of a life insurance policy or the person designated to pay premiums as shown on the records of the life insurer.(b)
For a cash loan on a life insurance policy, the life insurer shall notify the policyholder of the initial interest rate on the loan at the time the insurer makes the loan.(c)
For a premium loan on a life insurance policy, the life insurer shall notify the policyholder of the initial interest rate on the loan as soon as reasonably practical after making the loan. Except as provided by Subsection (d), subsequent notice is not required to be given when the insurer makes an additional premium loan on the policy.(d)
At least 30 days before an increase in the interest rate on a policy loan, the life insurer shall send a notice of the rate increase to the policyholder.(e)
The life insurer shall include in a notice required by this section the substance of the provisions of Section 1110.004 (Maximum Interest Rate on Policy Loans)(b) applicable to the policy. For a policy loan with an adjustable interest rate, the notice must state the frequency at which the rate is to be determined.
Source:
Section 1110.007 — Notice to Policyholder, https://statutes.capitol.texas.gov/Docs/IN/htm/IN.1110.htm#1110.007 (accessed May 11, 2024).
