Texas Insurance Code

§ 1105.052 — COMPUTATION OF ADJUSTED PREMIUMS USING NONFORFEITURE NET LEVEL PREMIUM METHOD

IN § 1105.052Title 7. LIFE INSURANCE AND ANNUITIES · Part A. LIFE INSURANCE IN GENERAL · Ch. 1105. STANDARD NONFORFEITURE LAW FOR LIFE INSURANCE · Art. B. COMPUTATION OF ADJUSTED PREMIUMS USING NONFORFEITURE NET LEVEL PREMIUM METHOD

Statute text

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(a)Except as provided by Section 1105.054 and subject to Subsection (b), the adjusted premiums for a policy to which this section applies must be computed on an annual basis and must be a uniform percentage of the respective premiums specified by the policy for each policy year so that the present value, at the date of issue of the policy, of all adjusted premiums is equal to the sum of:

(1)the then present value of the future guaranteed benefits available under the policy;

(2)one percent of:

(A)the amount of insurance, if the insurance is uniform in amount; or

(B)the average amount of insurance at the beginning of each of the first 10 policy years; and

(3)125 percent of the nonforfeiture net level premium as determined under Subsection (d).

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Legislative history

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