Texas Insurance Code
§ 425.062 — WEIGHTING FACTORS
IN § 425.062Title 4. REGULATION OF SOLVENCY · Part B. RESERVES AND INVESTMENTS · Ch. 425. RESERVES AND INVESTMENTS FOR LIFE INSURANCE · Art. B. STANDARD VALUATION LAW
Statute text
View on source(a)This section prescribes the weighting factors referred to in the formulas prescribed by Section 425.061.
(b)The weighting factor for a life insurance policy is determined by the following table: Guarantee Duration (Years)Weighting Factor10 or less.50More than 10, but not more than 20.45More than 20.35(c) For purposes of Subsection (b), the guarantee duration is the maximum number of years the life insurance can remain in force on a basis guaranteed in the policy or under options to convert to life insurance plans with premium rates or nonforfeiture values, or both, that are guaranteed in the original policy.
(d)The weighting factor for a single premium immediate annuity or for annuity benefits involving life contingencies arising from another annuity with a cash settlement option or from a guaranteed interest contract with a cash settlement option is.80.
(e)The weighting factor for an annuity or a guaranteed interest contract, other than an annuity or contract to which Subsection (d) applies, is determined by the following tables:
(1)For an annuity or guaranteed interest contract that is valued on an issue year basis: Guarantee Duration (Years)Weighting Factor for Plan Type A B C5 or less:.80.60.50More than 5, but not morethan 10:.75.60.50More than 10, but not morethan 20:.65.50.45More than 20:.45.35.35(2) For an annuity or guaranteed interest contract that is valued on a change in fund basis, the factors prescribed by Subdivision (1) increased by: Plan Type A B C .15 .25 .05
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Legislative history
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.