Tex. Ins. Code Section 425.053
Annual Valuation of Reserves for Policies and Contracts Issued Before Operative Date of Valuation Manual

(a)

The department shall annually value or cause to be valued the reserves for all outstanding life insurance policies and annuity and pure endowment contracts of each life insurance company engaged in business in this state issued before the operative date of the valuation manual.

(b)

In computing reserves under Subsection (a), the department may use group methods and approximate averages for fractions of a year or otherwise.

(c)

Instead of valuing the reserves as required by Subsection (a) for a foreign or alien company, the department may accept any valuation made by or for the insurance supervisory official of another state or jurisdiction if the valuation complies with the minimum standard provided by this subchapter.

(d)

Except as otherwise provided by this subchapter, policies and contracts issued on or after the operative date of the valuation manual are governed by Section 425.0535 (Annual Valuation of Reserves for Policies and Contracts Issued on or After Operative Date of Valuation Manual).

(e)

The minimum standards for the valuation of policies and contracts issued before the operative date of the valuation manual are as provided by Sections 425.058 (Computation of Minimum Standard: General Rule) through 425.071 (Lapse Rates in Minimum Standard of Valuation) and Section 425.072 (Minimum Standard for Accident and Health Insurance Contracts)(b), as applicable. Sections 425.072 (Minimum Standard for Accident and Health Insurance Contracts)(a), 425.073 (Valuation Manual for Policies Issued on or After the Operative Date of the Valuation Manual), and 425.074 (Requirements of a Principle-based Valuation) do not apply to a policy or contract described by this subsection.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.
Amended by:
Acts 2015, 84th Leg., R.S., Ch. 313 (S.B. 1654), Sec. 2, eff. September 1, 2015.
Acts 2015, 84th Leg., R.S., Ch. 313 (S.B. 1654), Sec. 3, eff. September 1, 2015.

Source: Section 425.053 — Annual Valuation of Reserves for Policies and Contracts Issued Before Operative Date of Valuation Manual, https://statutes.­capitol.­texas.­gov/Docs/IN/htm/IN.­425.­htm#425.­053 (accessed Jun. 5, 2024).

425.001
Securities in Amount of Reserves Required 425.002
Certain Insurers: Deposit of Securities, Money, or Property in Amount of Legal Reserves 425.003
Certain Insurers: Required Deposits of Securities 425.004
Records of Securities Deposited with Department 425.005
Department Duties Regarding Deposited Securities 425.006
Additional Reserves Required: Substandard or Extra Hazardous Policies 425.007
Subscription to or Underwriting Purchase or Sale of Securities or Property Prohibited 425.008
Authorized Investments for Foreign Companies 425.009
Student Loans 425.051
Short Title 425.052
Definitions 425.053
Annual Valuation of Reserves for Policies and Contracts Issued Before Operative Date of Valuation Manual 425.054
Actuarial Opinion of Reserves Issued Before Operative Date of Valuation Manual 425.055
Supporting Memorandum for Actuarial Opinion 425.056
Limitation on Liability for Actuarial Opinion 425.057
Disciplinary Action: Company or Person Certifying Opinion 425.058
Computation of Minimum Standard: General Rule 425.059
Computation of Minimum Standard for Certain Annuities and Pure Endowment Contracts 425.060
Applicability of Calendar Year Statutory Valuation Interest Rates 425.061
Computation of Calendar Year Statutory Valuation Interest Rate: General Rule 425.062
Weighting Factors 425.063
Reference Interest Rate 425.064
Commissioners Reserve Valuation Method for Life Insurance and Endowment Benefits 425.065
Commissioners Annuity Reserve Valuation Method for Annuity and Pure Endowment Benefits 425.066
Minimum Aggregate Reserves 425.067
Optional Reserve Computations 425.068
Reserve Computation: Gross Premium Charged Less than Valuation Net Premium 425.069
Reserve Computation: Indeterminate Premium Plans and Certain Other Plans 425.070
Computation of Reserve for Certain Policies by Calendar Year of Issue 425.071
Lapse Rates in Minimum Standard of Valuation 425.072
Minimum Standard for Accident and Health Insurance Contracts 425.073
Valuation Manual for Policies Issued on or After the Operative Date of the Valuation Manual 425.074
Requirements of a Principle-based Valuation 425.075
Experience Reporting for Policies in Force on or After Operative Date of Valuation Manual 425.076
Confidentiality 425.077
Single State Exemption 425.101
Definitions 425.102
Inapplicability of Certain Law 425.103
Applicability of Subchapter 425.104
Purpose 425.105
Written Investment Plan 425.106
Investment Records 425.108
Authorized Investments and Transactions in General 425.109
Authorized Investments: Government Obligations 425.110
Authorized Investments: Obligations of and Other Investments in Business Entities 425.111
Authorized Investments: Bonds Issued, Assumed, or Guaranteed in International Market 425.112
Authorized Investments: Policy Loans 425.113
Authorized Investments: Deposits in Certain Financial Institutions 425.114
Authorized Investments: Insurance Company Investment Pools 425.115
Authorized Investments: Equity Interests 425.116
Authorized Investments: Preferred Stock 425.117
Authorized Investments: Collateral Loans 425.118
Authorized Investments: Obligations Secured by Real Property Loans 425.119
Authorized Investments: Real Property 425.120
Authorized Investments: Oil, Gas, and Minerals 425.121
Authorized Investments: Securities Lending, Repurchase, Reverse Repurchase, and Dollar Roll Transactions 425.122
Authorized Investments: Premium Loans 425.123
Authorized Investments: Money Market Funds 425.124
Authorized Investments: Risk Control Transactions 425.125
Risk Control Transactions: Definitions 425.126
Risk Control Transactions: Derivative Use Plan 425.127
Risk Control Transactions: Internal Control Procedures 425.128
Risk Control Transactions: Oversight by Commissioner 425.129
Risk Control Transactions: Limitations on Income Generation Transactions 425.130
Risk Control Transactions: Limitations on Replication Transactions 425.131
Risk Control Transactions: Trading Requirements 425.132
Risk Control Transactions: Offsetting Transactions 425.151
Authorized Investments: Foreign Countries and United States Territories 425.152
Authorized Investments: Investments Not Otherwise Specified or Prohibited 425.153
Authorized Investments: Certain Previously Authorized Investments 425.154
Applicability of Percentage Authorizations and Limitations 425.155
Qualification of Investments 425.156
Distributions, Reinsurance, and Merger 425.157
Aggregate Diversification Requirements 425.158
Waiver by Commissioner of Quantitative Limitations 425.159
Accounting Provisions 425.160
Investments of Ceding Insurers 425.161
Acting as Real Estate Broker or Salesperson Prohibited 425.162
Rules 425.201
Definition 425.202
Applicability of Subchapter 425.203
Limitation on Funds and Other Assets 425.204
Approval of Investments and Loans Required 425.205
Authorized Investments for All Funds: Government Bonds 425.206
Authorized Investments for All Funds: Corporate Bonds, Notes, and Debentures 425.207
Authorized Investments for All Funds: Shares of Savings and Loan Associations 425.208
Authorized Investments for All Funds: Bank and Bank Holding Company Stocks 425.209
Authorized Investments for All Funds: Debentures of Public Utility Corporations 425.210
Authorized Investments for All Funds: Preferred Stock of Public Utility Corporations 425.211
Authorized Investments for All Funds: Bonds Issued, Assumed, or Guaranteed in International Market 425.212
Authorized Investments for All Funds: Securities or Investments Authorized or Described by Specific Statutory Provision 425.213
Authorized Investments for All Funds: Other Securities Specifically Authorized by Law 425.214
Authorized Investments for All Funds: Loans Secured by Real Property 425.215
Authorized Investments for All Funds: Loans Secured by Certain Collateral Secured by Real Property 425.216
Authorized Investments for All Funds: Policy Loans 425.217
Authorized Investments for All Funds: Loans Secured by Certain Securities 425.218
Authorized Investments for All Funds: Securities Not Otherwise Specified 425.219
Authorized Investments for Policy Reserves and Surplus: Bonds of Certain Water Control and Improvement Districts 425.220
Authorized Investments for Capital, Surplus, and Contingency Funds: Capital Stock, Bonds, and Other Corporate Obligations 425.221
Authorized Investments for Capital, Surplus, and Contingency Funds: Bonds or Notes of Educational or Religious Corporations 425.222
Authorized Investments for Capital, Surplus, and Contingency Funds: Life Income Interests in Qualified Trusts 425.223
Authorized Investments for Capital, Surplus, and Contingency Funds: Capital Stock of Reinsurer 425.224
Authorized Investments for Capital, Surplus, and Contingency Funds: Loans Secured by Corporate Stock 425.225
Investment in Foreign Securities 425.226
Investment in Stock Subject to Assessment Prohibited 425.227
Certain Investment Powers Not a Restriction 425.228
Investments of Ceding Insurer 425.229
Authorized Investments: Real Estate for Insurer’s Offices 425.230
Authorized Investments: Oil, Gas, and Minerals 425.231
Authorized Investments: Real Property Acquired Under Certain Circumstances 425.232
Authorized Investments: Improved Income-producing Real Property 425.0535
Annual Valuation of Reserves for Policies and Contracts Issued on or After Operative Date of Valuation Manual 425.0545
Actuarial Opinion of Reserves After Operative Date of Valuation Manual 425.1185
Authorized Investments: Mezzanine Real Estate Loans 425.1231
Authorized Investments: Bond Exchange-traded Funds 425.2061
Authorized Investments for All Funds: Bond Exchange-traded Funds
Green check means up to date. Up to date

Accessed:
Jun. 5, 2024

§ 425.053’s source at texas​.gov