Sec. 1110.008. LOAN VALUE OF POLICY; TERMINATION OF POLICY BASED ON CHANGE IN INTEREST RATE. (a) The loan value of a life insurance policy shall be determined in accordance with Section 1101.009.
(b) A life insurance policy may not be terminated in a policy year solely as the result of a change in the policy loan interest rate during that policy year, and the life insurer shall maintain coverage during that policy year until the time at which coverage would otherwise have terminated if there had been no change in the interest rate.
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