Tex. Ins. Code § 425.071 · Subchapter B. STANDARD VALUATION LAW
LAPSE RATES IN MINIMUM STANDARD OF VALUATION.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(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.
Notes and commentary — not statutory text
History
Added by Acts 2007, 80th Leg., R.S., Ch. 681 (H.B. 1590), Sec. 1, eff. June 15, 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 ecdabbecea1afb3994dd81e5c127673f3908d94616b49def1f93bcc7928eb8ca
- 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 1 provision
Provisions in this library whose text cites Tex. Ins. Code § 425.071. 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.