Tex. Ins. Code Section 1112.002
Certain Guarantees Constitute Definite Contract Benefit; Valuation of Benefit

(a)

Except as provided by Subsection (e), a guarantee described by Section 1112.001 (Certain Guarantees Not Prohibited) that is in a policy or coupon issued after September 5, 1955, shall be treated as a definite contract benefit and valued according to this section and the reserve requirements of Chapter 425 (Reserves and Investments for Life Insurance).

(b)

Except as provided by Subsection (c), for a policy or coupon issued before the date determined under Section 1105.002 (Applicability of Chapter)(a) or (b), as applicable to the company, a contract benefit described by Subsection (a) shall be valued using the reserve valuation net premium for the benefits that is a uniform percentage of the gross premiums.

(c)

A policy described by Subsection (b) that contains a contract benefit described by Subsection (a) may be valued on a basis that provides for not more than one year preliminary term insurance.

(d)

For a policy or coupon issued on or after the date determined under Section 1105.002 (Applicability of Chapter)(a) or (b), as applicable to the company, a contract benefit described by Subsection (a) shall be valued using the commissioners reserve valuation method described by Section 425.064 (Commissioners Reserve Valuation Method for Life Insurance and Endowment Benefits).

(e)

A provision of this section relating to reserves does not apply to a policy issued before September 7, 1955.
Added by Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 1F.001, eff. April 1, 2009.

Source: Section 1112.002 — Certain Guarantees Constitute Definite Contract Benefit; Valuation of Benefit, https://statutes.­capitol.­texas.­gov/Docs/IN/htm/IN.­1112.­htm#1112.­002 (accessed May 11, 2024).

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Accessed:
May 11, 2024

§ 1112.002’s source at texas​.gov