Tex. Ins. Code § 1107.004 · Subchapter A. GENERAL PROVISIONS
OPTIONAL TERMINATION PROVISION.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(a) Notwithstanding the requirements of Section 1107.003, an annuity contract may provide that the company has the option to terminate the contract by making a cash payment of the then present value of that portion of the paid-up annuity benefit if:
(1) no considerations are received under the contract for two years; and
(2) at maturity, payments on the portion of the paid-up annuity benefit on the plan stipulated in the contract attributable to considerations paid before that period would be less than $20 each month.
(b) If an annuity contract contains a provision permitted under Subsection (a):
(1) the present value of a portion of a paid-up annuity benefit paid under that provision must be computed on the basis of the mortality table, if any, and interest rates specified in the contract for determining the paid-up annuity benefit; and
(2) a payment made under that provision relieves the company of any further obligation under the contract.
Notes and commentary — not statutory text
History
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 2, eff. June 1, 2003. Amended by Acts 2003, 78th Leg., ch. 869, Sec. 1, eff. June 20, 2003.
Source of truth
- Edition
- Current through the 89th 2nd Called Legislative Session, 2025
- Official file
- https://statutes.capitol.texas.gov/Docs/IN/htm/IN.1107.htm
- Text hash
- sha256 355fa651ab2d10a11e8e4f9ce483d93b2ff02b0241e256a6f24ca4b16beb3b65
- Composed by
- compose_tx.py 2026-10-05: the Legislative Council's chapter files read in document order; verify_tx.py's independent reading (lxml DOM walk) agrees character for character
This section cites
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Procedural information only. Not legal advice and not a substitute for the advice of an attorney. Confirm the current text with the official publisher before relying on it.