Texas Insurance Code

§ 1105.012 — PROGRESSION OF CASH SURRENDER VALUES

IN § 1105.012Title 7. LIFE INSURANCE AND ANNUITIES · Part A. LIFE INSURANCE IN GENERAL · Ch. 1105. STANDARD NONFORFEITURE LAW FOR LIFE INSURANCE · Art. A. GENERAL PROVISIONS

Statute text

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(a)This section applies only to a policy issued on or after January 1, 1985.

(b)Any cash surrender value available under a policy to which this section applies on default in the payment of a premium due on any policy anniversary must be in an amount that does not differ by more than two-tenths of one percent of the amount of insurance, if the insurance is uniform in amount, or the average amount of insurance at the beginning of each of the first 10 policy years, from the sum of:

(1)the greater of:

(A)zero; or

(B)the basic cash value as determined under Subsection (c); and

(2)the present value of any existing paid-up additions minus the amount of any indebtedness to the company under the policy.

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Legislative history

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 2, eff. June 1, 2003.