Texas Administrative Code

(a) All filings submitted pursuant to this subchapter must be accompanied by the department 's transmittal checklist except for the documents listed in § 3.1 (11)(B) of this title (relating to Scope), which must be accompanied by the department 's transmittal form as described in…

(a) Acceptance, approval, and exemption of filings. Upon submission, a filing will be accepted for preliminary review of compliance with the filing requirements in this subchapter. If the filing requirements in this subchapter have not been satisfied, the department will consider…

(a) A filing that includes a copy of a form that is submitted in braille as an exact copy of a previously approved form, or that is submitted in a non-English language that is translated from a previously approved English language form, must include a certification as required un…

(a) An issuer submitting a filing for a group policy, agreement, evidence of coverage, or contract must comply with the requirements in this section. (1) An issuer must identify the specific group type the form is being filed under by indicating the applicable Insurance Code sect…

When any other type participating policies are being reviewed by the commissioner of insurance for approval or disapproval, the commissioner is authorized to study and take into consideration not only the titles, terms, and text of such policy itself but also the following additi…

From and after the effective date hereof, the commissioner will not approve any "certain participating" policy form as defined herein. The commissioner will proceed to withdraw approval, under authority of Insurance Code Chapter 1701, of any such forms which have heretofore been …

Consistent with the definitions and principles contained and expressed in § 3.201 of this title (relating to Definition of Certain Participating Policies), and without limiting their generality, the types of policies described in paragraphs (1) and (2) of this section are also de…

A "certain participating" policy is defined as any contract of life insurance which contains a provision through which the policy holder becomes, or which creates or tends to create the understanding that he will become, an investor in the insurance company, and that, as an inves…

(a) Purpose. This section establishes plain language requirements and procedures to make contracts easier to read by the public and to remove language that may be unjust, deceptive, misleading, or unreasonably confusing. (b) Applicability. This section applies to all forms that a…

The following words and terms, when used in this subchapter, have the following meanings, unless the context clearly indicates otherwise. (1) Amendment or endorsement--A form that is not a rider that changes or modifies the provisions of an issued policy, certificate, contract, o…

(a) Forms may be submitted as matrix or insert page forms. Any issuer submitting a matrix or insert page form: (1) must identify each matrix provision or insert page with a unique form number that: (A) is sufficient to distinguish it from all other matrix provisions or insert pag…

(a) Variable material generally. As specified in this section, an issuer may file forms, advertising, or provider contracts using variable material to illustrate the ways an issued document may vary from the filed material. Any variable material must be identified using brackets …

(a) General reporting requirements applicable to all life settlement providers. All life settlement providers must comply with the general reporting requirements set forth in paragraphs (1) and (2) of this subsection. (1) On or after January 1 and before March 1 of each year, eac…

(a) Filing requirement. Each life settlement broker or provider must file with the department any advertisement or other solicitation materials used to market life settlement contracts or broker's or provider's services to owners in this state on or before the date such materials…

A life settlement provider may not offer an owner a life settlement contract with a minimum value that is less than the cash surrender value or accelerated death benefit, if such accelerated death benefit may be claimed at the time the owner enters into the life settlement contra…

The commissioner adopts by reference the form Important Information You Should Know Before Entering Into A Life Settlement (revised April 2013), as a shopper's guide for delivery to owners during the solicitation process. The life settlement broker, or the provider if the transac…

(a) Life settlement contracts. All contracts used to effectuate life settlements must contain the provisions set forth in paragraphs (1) - (8) of this subsection, as follows: (1) a provision that the life settlement contract or the contract together with the application, includin…

(a) General form filing requirement. A person must not use a form used to effectuate a life settlement in this state unless the form has been filed with and approved by the commissioner under this section, if prior approval is required by subsection (f) of this section. (b) Requi…

(a) Who can verify health status. Only a licensed life settlement broker, licensed life settlement provider, or authorized representative of a licensed life settlement broker or licensed life settlement provider may contact an insured to determine the insured's health status or t…

A life settlement broker or provider must maintain a copy of the life settlement contract, verification of coverage, and any life expectancy estimate for each settled policy for five years from the date of execution of the contract. Notes 28 Tex. Admin. Code § 3.1729 The provisio…

Breach of a life settlement broker's fiduciary duty includes, but is not limited to: (1) receiving compensation for negotiating a life settlement contract that would result in the owner receiving less than either the cash surrender value or accelerated death benefit, if such acce…

For purposes of Insurance Code § 101.051(b)(8) and (9) , unauthorized insurance includes participation of a life settlement broker or provider in connection with a life settlement contract for which the insured resides in this state but for which the owner is a trust or similar e…

(a) Insurance Code §§ 1111A.003(p) , 1111A.012 , and 1111A.014(l) and (m) do not apply to a life settlement broker who acts solely as a life expectancy estimator. (b) A life settlement broker or life insurance agent who solely performs estimates of life expectancy must indicate o…

(a) Operating as a life settlement broker. A licensed life insurance agent may operate as a life settlement broker, provided that: (1) the life insurance agent has held a license as a life insurance agent: (A) in this state for at least one year; or (B) in the person's home state…

(a) A continuing education provider for life settlement broker continuing education must comply with: (1) Sections 19.1005 , 19.1007 , and 19.1008 of this title (relating to Provider Registration, Instructor, and Speaker Criteria; Course Certification Submission Applications, Cou…

(a) Individual continuing education requirement. A life settlement broker must complete at least 15 hours of department-certified life settlement continuing education during each two-year license period. (b) Entity continuing education requirement. A partnership, corporation, or …

(a) Renewal form. To renew an unexpired life settlement provider's or broker's license, a license holder must submit to the department a completed Application for Renewal, Surrender, or Change of Information for a Life Settlement Provider or Broker form. The license holder must s…

(a) Applicant. In this section, "applicant" means a person applying for a life settlement broker or provider license. (b) License requirements. (1) A person engaging in business as a life settlement broker or life settlement provider in this state must apply for and obtain a lice…

(a) Application form. The commissioner adopts by reference the License Application for a Life Settlement Provider or Broker form (revised April 2013) as the application for license for each person engaging in, or desiring to engage in, business as a life settlement broker or life…

In this subchapter, the following terms have the meanings assigned by Insurance Code § 1111A.002 , unless the context clearly indicates otherwise: (1) advertisement; (2) broker; (3) business of life settlements; (4) insured; (5) life expectancy; (6) life insurance agent; (7) life…

This subchapter: (1) applies to all persons involved in the business of life settlements in this state as specified in Insurance Code Chapter 1111A; (2) does not regulate the actions of an investor providing money to a life settlement provider, and does not preempt, supersede, or…

(a) Purpose. Under Insurance Code Chapter 1111A, the Life Settlements Act, the commissioner implements this subchapter to: (1) establish life settlement requirements concerning license applications, renewal, continuing education, and disclosures; (2) establish form filing require…

(a) Except as provided by subsection (b) of this section, for a form or rate filing, only one product (including all forms that will constitute the entire contract and their associated rates) may be submitted in a single filing. This does not prevent an issuer from filing a produ…

(a) Companies that do business only in Texas and no other state are not required to perform the asset adequacy analysis required by § 3.1605 of this title (relating to General Requirements) unless required by the commissioner pursuant to § 3.1603 of this title (relating to Commis…

(a) General. Any actuarial memorandum required by the provisions of this subchapter must be prepared in accordance with and subject to the provisions and qualifications of paragraphs (1) - (5) of this subsection. (1) In accordance with Insurance Code §§ 425.054 - 425.057 , the ap…

(a) General description. The statement of actuarial opinion required by this section must consist of the following paragraphs: (1) a paragraph identifying the appointed actuary and his or her qualifications, recommended language is provided in subsection (b)(1) of this section; (…

(a) Submission of statement of actuarial opinion. Any statement of actuarial opinion required by this subchapter must be submitted in accordance with paragraphs (1) and (2) of this subsection. (1) There is to be included on or attached to page one of the annual statement for each…

The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise. (1) AVR--Asset valuation reserve. (2) Actuarial opinion--The opinion of an appointed actuary regarding the adequacy of the reserves and …

The commissioner may require any company, otherwise exempt from asset adequacy analysis requirements in this subchapter, to provide an actuarial opinion and actuarial memorandum which complies with the asset adequacy analysis requirements in this subchapter including requirements…

(a) This subchapter shall apply to all life insurance companies doing business in this state and to all life insurance companies which are authorized to reinsure life insurance, annuities or accident and health insurance business in this state. (b) This subchapter shall be applie…

The purpose of this subchapter is to prescribe guidelines and standards for the activities described in paragraphs (1) - (3) of this section: (1) the submission of a statement of actuarial opinion in accordance with Insurance Code § 425.054 and for memoranda in support of such op…

(a) General certification - all filings. All filings must include the following certifications: (1) the certification is on behalf of the issuer; (2) the issuer is bound by the certification; (3) the issuer is familiar with all statutes and regulations of this state and the Unite…

In using the 2012 IAR Mortality Table, the mortality rate for a person age x in year (2012 + n) is calculated as follows: Attached Graphic Notes 28 Tex. Admin. Code § 3.1506 The provisions of this §3.1506 adopted to be effective March 4, 2014, 39 TexReg 1394

In using the 1994 GAR Table, the mortality rate for a person age x in year (1994 + n) is calculated as follows: Attached Graphic Notes 28 Tex. Admin. Code § 3.1505 The provisions of this §3.1505 adopted to be effective December 22, 1999, 24 TexReg 11393; amended to be effective M…

(a) Except as provided in subsections (b) and (c) of this section, the 1983 GAM Table, the 1983 Table "a", and the 1994 GAR Table are recognized and approved as group annuity mortality tables for valuation and, at the option of the company, any one of these tables may be used for…

(a) Except as provided in subsections (b) and (c) of this section, the 1983 Table "a" is recognized and approved as an individual annuity mortality table for valuation and, at the option of the company, may be used to determine the minimum standard of valuation for any individual…

The following words and terms, when used in this subchapter, have the following meanings, unless the context clearly indicates otherwise. (1) 1983 GAM Table--Mortality table developed by the Society of Actuaries' Committee on Annuities and adopted as a recognized mortality table …