Tex. Ins. Code § 1107.055 · Subchapter B. COMPUTATION OF MINIMUM NONFORFEITURE AMOUNT
INTEREST RATE.
Text — Current through the 89th 2nd Called Legislative Session, 2025
The interest rate used in determining minimum nonforfeiture amounts shall be an annual rate of interest determined as the lesser of three percent per annum and the following, which must be specified in the contract if the interest rate will be redetermined:
(1) the five-year Constant Maturity Treasury Rate reported by the Federal Reserve as of a date, or average over a period, rounded to the nearest 1/20th of one percent, specified in the contract no longer than 15 months prior to the contract issue date or redetermination date under Subdivision (4);
(2) reduced by 125 basis points;
(3) where the resulting interest rate is not less than 0.15 percent; and
(4) the interest rate shall apply for an initial period and may be redetermined for additional periods. The redetermination date, basis, and period, if any, shall be stated in the contract. As used in this section, basis is the date, or average over a specified period, which produces the five-year Constant Maturity Treasury Rate to be used at each redetermination date.
Notes and commentary — not statutory text
History
Added by Acts 2003, 78th Leg., ch. 869, Sec. 1, eff. June 20, 2003.
Amended by:
Acts 2021, 87th Leg., R.S., Ch. 262 (H.B. 1777), Sec. 1, eff. September 1, 2021.
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 fe43a04de5a52d64fac6cb982d6a21d674307d00cc2405484b69fa24f9017a78
- 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
Cited by 2 provisions
Provisions in this library whose text cites Tex. Ins. Code § 1107.055. Each shows the citation as that text prints it.
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.