Texas Insurance Code

§ 1152.204 — NONFORFEITURE VALUES

IN § 1152.204Title 7. LIFE INSURANCE AND ANNUITIES · Part C. SPECIALIZED COVERAGES · Ch. 1152. SEPARATE ACCOUNTS, VARIABLE CONTRACTS, AND RELATED PRODUCTS · Art. E. MODIFIED GUARANTEED CONTRACTS

Statute text

View on source

(a)A modified guaranteed contract must contain nonforfeiture values that are based on a market-value adjustment formula if the contract is held for a period shorter than the period specified in the contract. The formula may or may not reflect the value of assets held in the separate account.

(b)A modified guaranteed contract must prominently state on its first page that the nonforfeiture values may increase or decrease based on the market-value formula specified in the contract.

Legislative history

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