Texas Insurance Code
§ 1101.153 — COMPUTATION OF NET VALUE OF STIPULATED FORM OF INSURANCE
IN § 1101.153Title 7. LIFE INSURANCE AND ANNUITIES · Part A. LIFE INSURANCE IN GENERAL · Ch. 1101. LIFE INSURANCE · Art. D. RIGHTS OF INSURED UNDER CERTAIN OLDER POLICIES
Statute text
View on source(a)Except as provided by Subsection (c), the net value of a life insurance policy secured under Section 1101.152 must be equal to the amount of the reserve on the policy for which premium payment is in default and on any dividend additions to that policy on the date of default, less the sum of:
(1)not more than two and one-half percent of the amount insured under the policy and any existing dividend additions to the policy; and
(2)the amount of any existing indebtedness to the company on the policy.
(b)The reserve described by Subsection (a) excludes any reserve for disability or accidental death benefits.
(c)The net value of a life insurance policy that is secured under Section 1101.152 for a policy other than an industrial life insurance policy and that is issued to insure a female risk may be computed using an age not more than three years younger than the actual age of the insured if the policy uses the same age differential to compute the policy reserve.
(d)Except as provided by Subsection (e), the amount of the policy reserve under Subsection (a) must be computed according to the mortality table, interest rate, and method adopted in the policy for computing the reserve.
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Legislative history
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 2, eff. June 1, 2003.