Tex.
Ins. Code Section 884.303
Issuance of Life Insurance Policies by Certain Companies
(a)
A stipulated premium company that possesses capital and unencumbered surplus in a combined amount of at least $100,000 may issue life insurance policies as authorized for a company operating under Chapter 841 (Life, Health, or Accident Insurance Companies).(b)
A stipulated premium company may not insure one life under this section for more than $25,000, except as provided by Section 884.304 or Subchapter I.(c)
A stipulated premium company may issue a policy under this section only on an endowment or limited pay basis.(d)
A stipulated premium company must reserve and reinsure a policy issued under this section as required for a company operating under Chapter 841 (Life, Health, or Accident Insurance Companies).(b)
If a stipulated premium company assumes a life insurance risk under a life insurance policy, the initial death benefit of $25,000 or less may increase to an amount greater than $25,000 subject to this section.(c)
For each policy year of a policy for which, after issuance, the death benefit exceeds $25,000, the amount of the increase of the death benefit at the end of that policy year from the end of the preceding policy year may not exceed the greater of:(1)
the amount computed using the maximum rate of increase provided by the policy, which rate may not exceed five percent a year, compounded annually; or(2)
the amount computed using the consumer price index for all urban consumers for all items and for all regions of the United States combined, as determined by the United States Department of Labor, Bureau of Labor Statistics, on September 30 of the year preceding the year in which the policy year ends, compounded annually.
Source:
Section 884.303 — Issuance of Life Insurance Policies by Certain Companies, https://statutes.capitol.texas.gov/Docs/IN/htm/IN.884.htm#884.303
(accessed May 4, 2024).