Texas Administrative Code

The purpose of this subchapter is to specify the content and procedural requirements for consumer notices for life insurance policy and annuity contract replacements as required by Insurance Code § 1114.006 , concerning Consumer Notice Documents. Notes 28 Tex. Admin. Code § 4.201…

When used in this subchapter, the words "agent" and "producer" mean, unless the context clearly indicates otherwise, an individual who holds a license under Insurance Code Chapter 4054, concerning Life, Accident, and Health Agents, and who sells, solicits, or negotiates life insu…

(a) The text contained in Figure: 28 TAC § 4.204 (b) , Figure: 28 TAC § 4.205 (1) , and Figure: 28 TAC § 4.205 (2) must be in at least 10-point type and presented in the same order as indicated in each figure and without any change to the specified text, including bolding effects…

(a) An agent who initiates an application for a life insurance policy or annuity contract must submit to the insurer, with or as part of the application, a statement signed by both the applicant and the agent as to whether the applicant has existing life insurance policies or ann…

In the case of a life insurance or annuity application initiated as a result of a direct response solicitation, the insurer must inquire whether the applicant, by applying for the proposed policy or contract, intends to replace, discontinue, or change an existing life insurance p…

(a) An insurer may not use, issue, or deliver a notice that is substantially similar to a promulgated consumer notice specified in Figure: 28 TAC § 4.204 (b) or Figure: 28 TAC § 4.205 (1) until it has been approved. (1) An insurer subject to Insurance Code Chapter 1114, concernin…

The following words and terms, when used in this subchapter, have the following meanings unless the context clearly indicates otherwise. (1) Agent--Any person, corporation, partnership, or other legal entity that is licensed as a life insurance agent. (2) Commissioner--The commis…

The following requirements are applicable to all insurers either seeking authority to issue variable annuities in this state or having the authority to issue variable annuity products in this state. (1) Licensing and approval to do business in this state. An insurer may not deliv…

(a) Establishment of separate account. Any domestic life insurance company issuing variable annuity contracts must establish one or more separate accounts under Insurance Code Chapter 1152, concerning Separate Accounts, Variable Contracts, and Related Products. (1) If no law or o…

Variable annuity contracts must conform to the requirements of this section in order to obtain the commissioner's approval. (1) Filing of variable annuity contracts. All variable annuity contracts, all riders, endorsements, applications, and other documents that are attached to a…

If any provision of these sections or the application of these sections to any person or circumstance is for any reason held to be invalid, the remainder of these sections and the application of such provision to other persons or circumstances will not be affected. Notes 28 Tex. …

(a) This subchapter applies to all group and individual annuity contracts and certificates, except as provided by subsection (b) of this section. (b) This subchapter does not apply to the following annuity products, except as provided in subsection (c) of this section: (1) immedi…

(a) Words and terms defined in Insurance Code Chapter 102, concerning Charitable Gift Annuities, have the same meaning when used in this subchapter. (b) The following words and terms, when used in this subchapter, have the following meanings unless the context clearly indicates o…

(a) For the purposes of this subchapter, "guaranteed element" means an element listed in §4.2305(a)(1) - (7) of this title (relating to Determinable Elements) that is guaranteed and determined at issue. An element is considered guaranteed if all of the underlying elements used in…

Compliance with this subchapter is not a defense in any action brought by or for the department alleging a violation of the Insurance Code, or, except for this subchapter, any rule adopted under the Insurance Code. Notes 28 Tex. Admin. Code § 4.2307 Adopted by Texas Register, Vol…

(a) If an application for an annuity contract or certificate is taken in a face-to-face meeting, the applicant must be given at or before the time of application both a disclosure document and the appropriate buyer's guide specified in § 4.2310 of this title (relating to Buyer's …

(a) At a minimum, the following information, if applicable, must be included in the disclosure document required to be provided under this subchapter: (1) the generic name of the contract; the insurer product name, if different from the generic name; the product's form number; an…

For the purposes of this subchapter, an appropriate buyer's guide is the latest version of the buyer's guide adopted by the National Association of Insurance Commissioners (NAIC) that applies to the particular type of annuity (such as fixed deferred annuity, equity-indexed annuit…

(a) If the buyer's guide and the disclosure document required by this subchapter are not provided at or before the time of application, a free look period of at least 15 calendar days must be provided during which the applicant may return the contract without penalty. (b) Notice …

(a) For annuities in the payout period with changes in non-guaranteed elements and for the accumulation period of a deferred annuity, the insurer must provide each contract owner with a report, at least annually, on the status of the contract. (b) The report must contain at least…

(a) Before the recommendation or sale of an annuity, an agent must provide to the consumer a form that meets the requirements of Insurance Code § 1115.0514(b) , concerning Disclosure Obligation. The agent must use: (1) form FIN194 (07/21), which is adopted by reference and is ava…

The purpose of this subchapter is to approve and adopt the following mortality tables and establish the effective dates of their use in determining the minimum standard of valuation for annuity and pure endowment contracts: (1) the 1983 Table "a"; Attached Graphic (2) the 1983 GA…

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 fo…

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 § 4.2705 Adopted by Texas Register, Volume 49, Number 03, January 19, 2024, TexReg 0262 , eff. 1/24/2024

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 § 4.2706 Adopted by Texas Register, Volume 49, Number 03, January 19, 2024, TexReg 0262 , eff. 1/24/2024

The following words and terms, when used in these sections, have the following meanings unless the context clearly indicates otherwise. (1) 1958 CET Table--That mortality table developed by the Society of Actuaries Special Committee on New Mortality Tables, incorporated in the Na…

(a) For any policy of insurance delivered or issued for delivery in this state after the operative date of former Insurance Code Article 3.44a, §8 (recodified in Insurance Code Chapter 1105, Subchapter B, concerning Computation of Adjusted Premiums Using Nonforfeiture Net Level P…

For each plan of insurance with separate rates for smokers and nonsmokers, an insurer may: (1) use composite mortality tables to determine minimum reserve liabilities and minimum cash surrender values and amounts of paid-up nonforfeiture benefits or benefits under any extended te…

If any provision of these sections or the application of these sections to any person or circumstance is for any reason held to be invalid, the remainder of the sections and the application of such provision to other persons or circumstances will not be affected. Notes 28 Tex. Ad…

The 2001 CSO Mortality Table must be used for purposes of this subchapter under the requirements of Subchapter AA, Division 3 of this chapter (relating to 2001 CSO Mortality Table). Notes 28 Tex. Admin. Code § 4.2716 Adopted by Texas Register, Volume 49, Number 03, January 19, 20…

The purpose of this subchapter is to recognize, permit, and prescribe the use of the 2001 Commissioners Standard Ordinary (CSO) Mortality Table in accordance with Insurance Code § 425.058(c)(3) , concerning Computation of Minimum Standard: General Rule, and §1105.055(h), concerni…

The following words and terms, when used in this subchapter, have the following meanings unless the context clearly indicates otherwise. (1) 2001 CSO Mortality Table--Mortality tables, consisting of separate rates of mortality for male and female lives, developed by the American …

(a) At the election of the company for any one or more specified plans of insurance and subject to the conditions stated in this subchapter, the 2001 CSO Mortality Table may be used as the minimum standard for policies issued on or after May 1, 2003, and before the date specified…

(a) For each plan of insurance with separate rates for smokers and nonsmokers, an insurer may use: (1) composite mortality tables to determine minimum reserve liabilities and minimum cash surrender values and amounts of paid-up nonforfeiture benefits; (2) smoker and nonsmoker mor…

(a) The 2001 CSO Mortality Table may be used in applying Chapter 4, Subchapter BB, Division 3 of this title (relating to Valuation of Life Insurance Policies) in the following manner, subject to the transition dates for use of the 2001 CSO Mortality Table in § 4.2723 of this titl…

(a) For any ordinary life insurance policy delivered or issued for delivery in this state on and after May 1, 2003, that utilizes the same premium rates and charges for male and female lives or is issued in circumstances where applicable law does not permit distinctions on the ba…

The purpose of this subchapter is to recognize and permit the use of mortality tables that reflect differences in mortality between preferred and standard lives in determining minimum reserve liabilities in accordance with Insurance Code § 425.058(c)(3) , concerning Computation o…

The following words and terms, when used in this subchapter, have the following meanings unless the context clearly indicates otherwise. (1) 2001 CSO Mortality Table--Mortality tables, consisting of separate rates of mortality for male and female lives, developed by the American …

(a) Policies issued on or after January 1, 2007, and before January 1, 2017. At the election of the insurer, for each calendar year of issue, for any one or more specified plans of insurance and subject to satisfying the conditions stated in this subchapter, the 2001 CSO Preferre…

(a) For each plan of insurance with separate rates for preferred and standard nonsmoker lives, an insurer may use the super preferred nonsmoker, preferred nonsmoker, and residual standard nonsmoker tables to substitute for the nonsmoker mortality table found in the 2001 CSO Morta…

The purpose of this subchapter is to prescribe guidelines and standards for the following activities: (1) the submission of a statement of actuarial opinion in accordance with Insurance Code § 425.054 , concerning Annual Valuation of Reserves for Policies and Contracts Issued on …

(a) This subchapter applies to all life insurance companies doing business in this state and to all life insurance companies that are authorized to reinsure life insurance, annuities, or accident and health insurance business in this state. (b) This subchapter must be applied in …

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

The following words and terms, when used in this subchapter, 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 related…

(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…

(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 their qualifications, recommended language is provided in subsection (b)(1) of this section; (2) a …

(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 Chapter 425, Subchapter B, co…