Sec. 1110.005. FREQUENCY OF ADJUSTABLE INTEREST RATE DETERMINATION. A life insurer shall determine the adjustable interest rate under Section 1110.004(b)(2) at regular intervals at least once every 12 months but not more frequently than once in any three-month period. At the intervals specified in the life insurance policy, the insurer:
(1) may increase the rate charged when the interest rate determined under Section 1110.004(b)(2) would result in a rate increase of at least one-half of one percent per year; and
(2) shall reduce the rate charged when the interest rate determined under Section 1110.004(b)(2) would result in a rate decrease of at least one-half of one percent per year.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 2, eff. June 1, 2003.
Structure Texas Statutes
Title 7 - Life Insurance and Annuities
Subtitle A - Life Insurance in General
Chapter 1110 - Interest Rates on Certain Policy Loans
Section 1110.002. Applicability of Chapter
Section 1110.003. Applicability of Other Law
Section 1110.004. Maximum Interest Rate on Policy Loans
Section 1110.005. Frequency of Adjustable Interest Rate Determination
Section 1110.006. Information to Be Included in Policy
Section 1110.007. Notice to Policyholder
Section 1110.008. Loan Value of Policy; Termination of Policy Based on Change in Interest Rate