Tex. Ins. Code § 884.309 · Subchapter G. POWERS AND DUTIES RELATING TO COVERAGES
ADJUSTMENT OF PREMIUMS.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(a) The board of directors of a stipulated premium company by resolution may, subject to this chapter, increase or otherwise adjust a rate of premium on any insurance policy it issues, reinsures, or assumes when, in the board's discretion, the adjustment is necessary.
(b) In making a comprehensive adjustment of one or more classes of the stipulated premium company's policies, the board of directors may provide that an insured who is required to pay an increased premium may choose to pay a part or none of the amount of the increase and receive a reduction of the corresponding insurance benefits proportionate to the value of the unpaid part of the increase.
(c) This section does not apply to a policy:
(1) issued by a stipulated premium company that on the date the policy is issued possesses an unencumbered surplus in an amount of at least $50,000;
(2) on which the stipulated premium company has relinquished the right to adjust rates; and
(3) under which the premium for life insurance requires the payment of a premium for life insurance that alone is sufficient to maintain reserves at least equal to those computed on the basis of the 1958 Commissioners Standard Ordinary Table of Mortality with interest not to exceed 3-1/2 percent a year.
Notes and commentary — not statutory text
History
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, 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.884.htm
- Text hash
- sha256 9cb9d4299b0e146de3d7839798918399282a860202556f35ba02ac189ae8530e
- 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 § 884.309. Each shows the citation as that text prints it.
Insurance Code
- Tex. Ins. Code § 404.004CONSTRUCTION WITH LAW RELATING TO CAPITAL AND SURPLUS.Printed as Sections 822.054, 822.201-822.203, 822.205, 822.210-822.212, 841.054, 841.201, 841.204, 841.205, 841.207, 884.206, 884.308, and 884.309
- Tex. Ins. Code § 884.351GENERAL REQUIREMENTS FOR POLICY AND APPLICATION FORMS.Printed as Section 884.309
- Tex. Ins. Code § 884.407RELATIONSHIP OF SUBCHAPTER TO OTHER PROVISIONS OF CHAPTER.Printed as Sections 884.309 and 884.351
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.