Tex. Ins. Code Section 1114.004
Applicability; Exemptions


Except as otherwise specifically provided by this chapter, this chapter does not apply to transactions involving:


credit life insurance;


group life insurance or group annuities for which there is no direct solicitation of individuals by an agent;


life insurance and annuities used to fund prepaid funeral benefits contracts, as defined by Chapter 154 (Prepaid Funeral Services), Finance Code;


an application to:


exercise a contractual change or a conversion privilege made to the insurer that issued the existing policy or contract;


replace an existing policy or contract by the insurer that issued the existing policy or contract under a program filed with and approved by the commissioner; or


exercise a term conversion privilege among corporate affiliates;


life insurance proposed to replace life insurance under a binding or conditional receipt issued by the same insurer;


a policy or contract used to fund:


an employee pension benefit plan or employee welfare benefit plan that is covered by the Employee Retirement Income Security Act of 1974 (29 U.S.C. Section 1001 et seq.);


a plan described by Section 401(a), 401(k), or 403(b), Internal Revenue Code of 1986, if established or maintained by an employer;


a government or church plan, as defined by Section 414, Internal Revenue Code of 1986, a government or church welfare benefit plan, or a deferred compensation plan of a state or local government or tax exempt organization described under Section 457, Internal Revenue Code of 1986; or


a nonqualified deferred compensation arrangement established or maintained by an employer or plan sponsor;


new coverage provided under a life insurance policy or contract if the cost is borne wholly by the insured’s employer or by an association of which the insured is a member;


an existing life insurance policy that is a nonconvertible term life insurance policy scheduled to expire in five years or less and that cannot be renewed;


immediate annuities purchased with proceeds from an existing contract; or


structured settlements.


Notwithstanding Subsection (a)(6), this chapter applies to policies or contracts used to fund any plan or arrangement that is funded solely by contributions an employee elects to make, whether on a pre-tax or after-tax basis, if:


the insurer has been notified that plan participants may choose from among two or more insurers; and


there is a direct solicitation of an individual employee by an insurance agent for the purchase of a contract or policy.


Group life insurance or group annuity certificates marketed through direct response solicitation are subject to Section 1114.055 (Duties of Insurers Regarding Direct Response Solicitations).


Notwithstanding Subsection (a)(9), immediate annuities purchased with proceeds from an existing policy are not exempted from the requirements of this chapter.


For the purpose of Subsections (a), (b), and (c), “direct solicitation” does not include a group meeting held by an insurance agent solely for the purpose of:


educating or enrolling individuals; or


if initiated by an individual member of the group, assisting with the selection of investment options offered by a single insurer in connection with enrolling that individual.
Added by Acts 2007, 80th Leg., R.S., Ch. 904 (H.B. 2762), Sec. 1, eff. September 1, 2007.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 1156 (H.B. 2277), Sec. 4, eff. September 1, 2011.

Source: Section 1114.004 — Applicability; Exemptions, https://statutes.­capitol.­texas.­gov/Docs/IN/htm/IN.­1114.­htm#1114.­004 (accessed Jun. 5, 2024).

Jun. 5, 2024

§ 1114.004’s source at texas​.gov