Tex. Ins. Code § 425.068 · Subchapter B. STANDARD VALUATION LAW
RESERVE COMPUTATION: GROSS PREMIUM CHARGED LESS THAN VALUATION NET PREMIUM.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(a) If in a contract year the gross premium charged by a life insurance company on a policy or contract is less than the valuation net premium for the policy or contract computed by the method used in computing the reserve on the policy or contract but using the minimum valuation mortality standards and interest rate, the minimum reserve required for the policy or contract is the greater of:
(1) the reserve computed according to the mortality table, interest rate, and method actually used for the policy or contract; or
(2) the reserve computed by the method actually used for the policy or contract but using the minimum valuation mortality standards and interest rate and replacing the valuation net premium with the actual gross premium in each contract year for which the valuation net premium exceeds the actual gross premium.
(b) The minimum valuation mortality standards and interest rate under Subsection (a) are the standards and rate provided by Sections 425.058, 425.061, 425.062, and 425.063.
(c) This subsection applies only to a life insurance policy issued on or after January 1, 1985, for which the gross premium for the first policy year exceeds the gross premium for the second policy year, for which a comparable additional benefit is not provided in the first year for the excess premium, and that provides an endowment benefit, a cash surrender value, or a combination of an endowment benefit and cash surrender value, in an amount greater than the excess premium. For a policy to which this subsection applies, Subsections (a) and (b) shall be applied as if the method actually used in computing the reserve for the policy were the method described in Section 425.064, ignoring Section 425.064(c). The minimum reserve at each policy anniversary is the greater of:
(1) the minimum reserve computed in accordance with Section 425.064, including Section 425.064(c); or
(2) the minimum reserve computed in accordance with this section.
Notes and commentary — not statutory text
History
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.
Source of truth
- Edition
- Current through the 89th 2nd Called Legislative Session, 2025
- Official file
- https://statutes.capitol.texas.gov/Docs/IN/htm/IN.425.htm
- Text hash
- sha256 c2b605e3085381c5c5ee8c199c53319ee9e60f3855df7169a089374cbbea5984
- 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
Provisions in this library that the text above cites, as it prints each citation. A range cited as “ss. 61.13-61.16” links its first and last provisions.
Insurance Code
- Tex. Ins. Code § 425.058COMPUTATION OF MINIMUM STANDARD: GENERAL RULE.Printed as Sections 425.058, 425.061, 425.062, and 425.063
- Tex. Ins. Code § 425.061COMPUTATION OF CALENDAR YEAR STATUTORY VALUATION INTEREST RATE: GENERAL RULE.Printed as Sections 425.058, 425.061, 425.062, and 425.063
- Tex. Ins. Code § 425.062WEIGHTING FACTORS.Printed as Sections 425.058, 425.061, 425.062, and 425.063
- Tex. Ins. Code § 425.063REFERENCE INTEREST RATE.Printed as Sections 425.058, 425.061, 425.062, and 425.063
- Tex. Ins. Code § 425.064COMMISSIONERS RESERVE VALUATION METHOD FOR LIFE INSURANCE AND ENDOWMENT BENEFITS.Printed as Section 425.064 | Section 425.064(c)
Cited by 4 provisions
Provisions in this library whose text cites Tex. Ins. Code § 425.068. Each shows the citation as that text prints it.
Insurance Code
- Tex. Ins. Code § 425.058COMPUTATION OF MINIMUM STANDARD: GENERAL RULE.Printed as Sections 425.064, 425.065, and 425.068
- Tex. Ins. Code § 425.064COMMISSIONERS RESERVE VALUATION METHOD FOR LIFE INSURANCE AND ENDOWMENT BENEFITS.Printed as Section 425.068 | Sections 425.065 and 425.068
- Tex. Ins. Code § 425.066MINIMUM AGGREGATE RESERVES.Printed as Sections 425.064, 425.065, 425.068, and 425.069
- Tex. Ins. Code § 425.069RESERVE COMPUTATION: INDETERMINATE PREMIUM PLANS AND CERTAIN OTHER PLANS.Printed as Sections 425.064, 425.065, and 425.068
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.