Texas Insurance Code
§ 1105.151 — COMPUTATION OF ADJUSTED PREMIUMS FOR CERTAIN POLICIES ISSUED BEFORE JANUARY 1, 1989
IN § 1105.151Title 7. LIFE INSURANCE AND ANNUITIES · Part A. LIFE INSURANCE IN GENERAL · Ch. 1105. STANDARD NONFORFEITURE LAW FOR LIFE INSURANCE · Art. D. COMPUTATION OF ADJUSTED PREMIUMS FOR CERTAIN POLICIES
Statute text
View on source(a)This section applies only to a policy issued before January 1, 1989, to which Subchapter B does not apply.
(b)The adjusted premiums for a policy to which this section applies must be computed on an annual basis or, at the option of the company, on a fully continuous basis if that basis is consistent with actual policy provisions and the use of that basis is specified by the policy.
(c)Except as provided by Subsection (f), the adjusted premiums must be a uniform percentage of the respective premiums specified by the policy for each policy year, excluding amounts stated in the policy as extra premiums to cover impairments or special hazards, so that the present value, as of the date the policy is issued, of all the adjusted premiums is equal to the sum of:
(1)the then present value of the future guaranteed benefits available under the policy;
(2)two percent of:
(A)the amount of insurance, if the insurance is uniform in amount; or
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Legislative history
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 2, eff. June 1, 2003.