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Texas · Through 89th 2nd Called Legislative Session, 2025

Tex. Insurance Code § 425.071: LAPSE RATES IN MINIMUM STANDARD OF VALUATION.

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Where this section sits in the code
  1. INSURANCE CODE
  2. TITLE 4. REGULATION OF SOLVENCY
  3. SUBTITLE B. RESERVES AND INVESTMENTS
  4. CHAPTER 425. RESERVES AND INVESTMENTS FOR LIFE INSURANCE COMPANIES AND RELATED ENTITIES
  5. SUBCHAPTER B. STANDARD VALUATION LAW

(a) The minimum standard of valuation under this subchapter may include lapse rates in the calculation of reserves for a secondary guarantee in universal life contracts issued after December 31, 2006.

(b) For purposes of this section, a secondary guarantee refers to specified conditions in a universal life contract that, if satisfied, provide for death benefits to remain in effect regardless of the accumulation value in the contract.

(c) Lapse rates authorized by this section may not exceed two percent per year.

(d) The commissioner is authorized to adopt rules to implement this section.

Added by Acts 2007, 80th Leg., R.S., Ch. 681 (H.B. 1590), Sec. 1, eff. June 15, 2007.

Collected 2026-08-27T01:47:21Z. Source file · JSON

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