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Texas Insurance Code

§ 425.122 — AUTHORIZED INVESTMENTS: PREMIUM LOANS

IN § 425.122Title 4. REGULATION OF SOLVENCY · Part B. RESERVES AND INVESTMENTS · Ch. 425. RESERVES AND INVESTMENTS FOR LIFE INSURANCE · Art. C. AUTHORIZED INVESTMENTS AND TRANSACTIONS FOR CAPITAL STOCK LIFE, HEALTH, AND ACCIDENT INSURERS

Statute text

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(a)Subject to Subsection (b), an insurance company may make loans to finance the payment of premiums for the company's own insurance policies or annuity contracts.
(b)The amount of a loan under this section may not exceed the sum of:
(1)the available cash value of the insurance policy or annuity contract for which the premium loan is made; and
(2)the amount of any escrowed commissions payable relating to the insurance policy or annuity contract.

Legislative history

Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.