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80C57(2) AJA

CHAPTER 1112.

CERTAIN GUARANTEES IN LIFE INSURANCE POLICIES

Revised Law

1112.001.

CERTAIN GUARANTEES NOT PROHIBITED.

Section 841.253 does not prohibit the issuance of a life insurance policy that guarantees, by coupons or otherwise, definite payments or reductions in premiums.

(V.T.I.C. Art. 3.11 (part).)

Source Law

Section 841.253 of this code does not prohibit the issuance of life insurance policies guaranteeing, by coupons or otherwise, definite payments or reductions in premiums,

Revised Law

1112.002.

CERTAIN GUARANTEES CONSTITUTE DEFINITE CONTRACT BENEFIT; VALUATION OF BENEFIT.

Except as provided by Subsection (e), a guarantee described by

Section 1112.001 that is in a policy or coupon issued after September 5, 1955, [[[the effective date of this Act (Ch. 363, Acts 54th Leg., R.S., 1955)]]] shall be treated as a definite contract benefit and valued according to this

section and the reserve requirements of

Chapter 425 [[[V.T.I.C. Ch. 3]]].

Except as provided by Subsection (c), for a policy or coupon issued before the date determined under

Section 1105.002(

a) or (b), as applicable to the company, a contract benefit described by Subsection (

a) shall be valued using the reserve valuation net premium for the benefits that is a uniform percentage of the gross premiums.

A policy described by Subsection (

b) that contains a contract benefit described by Subsection (

a) may be valued on a basis that provides for not more than one year preliminary term insurance.

For a policy or coupon issued on or after the date determined under

Section 1105.002(

a) or (b), as applicable to the company, a contract benefit described by Subsection (

a) shall be valued using the commissioners reserve valuation method described by

Section 425.064 [[[V.T.I.C. Art. 3.28]]].

A provision of this

section relating to reserves does not apply to a policy issued before September 7, 1955.

(V.T.I.C. Art. 3.11 (part).)

Source Law

Art. 3.11.

but any such guarantee contained in policies or coupons issued after the effective date of this Act shall be treated as a definite contract benefit and so valued according to the reserve requirements of this

Chapter using in the case of policies or coupons issued before the date determined under

Section 1105.002(

a) or (

b) of this code, as applicable to the company, reserve valuation net premium for such benefits which is a uniform percentage of the gross premiums, provided that any policy containing such a contract benefit may be valued on a basis which provides for not more than one (1) year preliminary term insurance, and using in the case of policies or coupons issued on or after the date determined under

Section 1105.002(

a) or (

b) of this code, as applicable to the company, the commissioners reserve valuation method as defined in

Article 3.28.

Nothing in this

Section with respect to reserves shall apply to any policy issued prior to September 7, 1955.

Revisor's Note

V.T.I.C.

Article 3.11 refers to a policy or coupon issued after "the effective date of this Act."

The applicable provisions of V.T.I.C.

Article 3.11 were added by

Chapter 363, Acts of the 54th Legislature, Regular Session, 1955, which took effect September 5, 1955.

The revised law is drafted accordingly.

V.T.I.C.

Article 3.11 refers to valuation of certain benefits in a life insurance policy "according to the reserve requirements of this Chapter," meaning V.T.I.C.

Chapter 3.

V.T.I.C.

Chapter 3 is revised in various places in this code.

The reserve requirements for life insurers were revised in 2005 as

Chapter 425 of this code.

The revised law is drafted accordingly.

V.T.I.C.

Article 3.11 refers to "the commissioners reserve valuation method as defined in [V.T.I.C.]

Article 3.28."

The portion of

Article 3.28 that describes the commissioners reserve valuation method was revised in 2005 as

Section 425.064 of this code.

The revised law is drafted accordingly.

80C59(2) PB

CHAPTER 1113.

MANAGEMENT, CONTROL, AND DISPOSITION OF CERTAIN LIFE INSURANCE AND ANNUITY CONTRACTS

Revised Law

1113.001.

LIFE INSURANCE AND ANNUITY CONTRACTS OF SPOUSE.

Except to the extent provided by the contract or any assignment of the contract, a spouse has management, control, and disposition without the joinder or consent of the other spouse of any contract of life insurance or annuity issued in the spouse's name, regardless of whether the contract was issued before, on, or after January 1, 1968.

(V.T.I.C. Art. 3.49-3.)

Source Law

A spouse shall have management, control and disposition of any contract of life insurance or annuity heretofore or hereafter issued in his or her name or to the extent provided by the contract or any assignment thereof without the joinder or consent of the other spouse.

Revisor's Note

V.T.I.C.

Article 3.49-3 refers to a contract of life insurance or annuity "heretofore or hereafter" issued.

The revised law substitutes a reference to a contract issued before, on, or after January 1, 1968, for the quoted language because January 1, 1968, was the effective date of V.T.I.C.

Article 3.49-3.

80C57(2) AJA

80C57(2) AJA

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