Tex. Ins. Code § 1110.004 · Chapter 1110. INTEREST RATES ON CERTAIN POLICY LOANS
MAXIMUM INTEREST RATE ON POLICY LOANS.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(a) In this section, "published monthly average" means:
(1) Moody's Corporate Bond Yield Average--Monthly Average Corporates as published by Moody's Investors Service, Inc., or a successor to that corporation; or
(2) if the rate described by Subdivision (1) is no longer published, a substantially similar average established by rule of the commissioner.
(b) A life insurance policy must include a provision for an interest rate on a policy loan that:
(1) does not exceed 10 percent a year; or
(2) is an adjustable maximum interest rate established from time to time by the life insurer as permitted by law and does not exceed the lesser of:
(A) 15 percent a year; or
(B) the greater of:
(i) the published monthly average for the calendar month that ended two months before the date on which the rate is determined; or
(ii) the rate used to compute the cash surrender values under the life insurance policy during the applicable period plus one percent per year.
(c) This section also applies to the interest rate charged, on reinstatement of a policy loan, for the period during and after a lapse of the life insurance policy.
Notes and commentary — not statutory text
History
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 2, eff. June 1, 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.1110.htm
- Text hash
- sha256 554520a8e139361ba184de112022a8c59070e1d89048aeed125c65cafa02db71
- 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 3 provisions
Provisions in this library whose text cites Tex. Ins. Code § 1110.004. Each shows the citation as that text prints it.
Insurance Code
- Tex. Ins. Code § 1110.005FREQUENCY OF ADJUSTABLE INTEREST RATE DETERMINATION.Printed as Section 1110.004(b)(2)
- Tex. Ins. Code § 1110.006INFORMATION TO BE INCLUDED IN POLICY.Printed as Section 1110.004(b) | Section 1110.004(b)(2)
- Tex. Ins. Code § 1110.007NOTICE TO POLICYHOLDER.Printed as Section 1110.004(b)
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.