Tex.
Ins. Code Section 425.052
Definitions
(a)
In this subchapter:(1)
“Accident and health insurance” means contracts that incorporate morbidity risk and provide protection against economic loss resulting from accident, sickness, or medical conditions and as may be specified in the valuation manual.(2)
“Appointed actuary” means a qualified actuary who is appointed in accordance with the valuation manual to prepare the actuarial opinion required by Section 425.0545 (Actuarial Opinion of Reserves After Operative Date of Valuation Manual).(3)
“Company” means an entity that:(A)
has written, issued, or reinsured life insurance contracts, accident and health insurance contracts, or deposit-type contracts in this state and has at least one such policy in force or on claim; or(B)
has written, issued, or reinsured life insurance contracts, accident and health insurance contracts, or deposit-type contracts in any state and is required to hold a certificate of authority to write life insurance, accident and health insurance, or deposit-type contracts in this state.(4)
“Deposit-type contract” means a contract that does not incorporate mortality or morbidity risk and as may be specified in the valuation manual.(5)
“Life insurance” means contracts that incorporate mortality risk, including annuity and pure endowment contracts, and as may be specified in the valuation manual.(6)
“Policyholder behavior” means any action a policyholder, a contract holder, or any other person with the right to elect options, such as a certificate holder, may take under a policy or contract subject to this subchapter, including lapse, withdrawal, transfer, deposit, premium payment, loan, annuitization, or benefit elections prescribed by the policy or contract but excluding events of mortality or morbidity that result in benefits prescribed in their essential aspects by the terms of the policy or contract.(7)
“Principle-based valuation” means the valuation described by Section 425.074 (Requirements of a Principle-based Valuation).(8)
“Qualified actuary” means an individual who is qualified to sign the applicable statement of actuarial opinion in accordance with the American Academy of Actuaries’ qualification standards for actuaries signing such statements and who meets the requirements specified in the valuation manual.(9)
“Reserves” means reserve liabilities.(10)
“Tail risk” means a risk that occurs either where the frequency of low probability events is higher than expected under a normal probability distribution or where there are observed events of very significant size or magnitude.(11)
“Valuation manual” means the manual of valuation instructions adopted by the commissioner by rule.(b)
As used in this subchapter:(1)
an “issue year basis” of valuation means a valuation basis under which the interest rate used to determine the minimum valuation standard for the entire duration of the annuity or guaranteed interest contract is the calendar year valuation interest rate for the year of issue or year of purchase of the annuity or guaranteed interest contract; and(2)
a “change in fund basis” of valuation means a valuation basis under which the interest rate used to determine the minimum valuation standard applicable to each change in the fund held under the annuity or guaranteed interest contract is the calendar year valuation interest rate for the year of the change in the fund.(c)
The definitions under Subsection (a) of “accident and health insurance,” “appointed actuary,” “company,” “deposit-type contract,” “life insurance,” “policyholder behavior,” “principle-based valuation,” “qualified actuary,” and “tail risk” apply only on and after the operative date of the valuation manual.
Source:
Section 425.052 — Definitions, https://statutes.capitol.texas.gov/Docs/IN/htm/IN.425.htm#425.052 (accessed Jun. 5, 2024).
