Sec. 1131.857. INDIVIDUAL PREMIUM RATE INCREASE. (a) A policy may provide that, during the period of a work stoppage, an individual premium rate may be increased by an amount not to exceed 20 percent of the amount shown in the policy, or a greater percentage as approved by the commissioner, to provide sufficient compensation to the insurer to cover increased:
(1) administrative costs; and
(2) mortality and morbidity.
(b) If a policy provides for a premium rate increase in accordance with this section, the amount of an employee's contribution must be increased by the same percentage.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 2, eff. June 1, 2003.
Structure Texas Statutes
Title 7 - Life Insurance and Annuities
Subtitle B - Group Life Insurance
Chapter 1131 - Group Life Insurance and Wholesale, Franchise, or Employee Life Insurance
Subchapter R. Continuation of Certain Group Life Insurance During Labor Dispute
Section 1131.851. Applicability of Subchapter
Section 1131.853. Contributions if Policyholder Is Trustee
Section 1131.854. Contributions if Policyholder Is Not Trustee
Section 1131.855. Payment of Contribution and Premium
Section 1131.856. Past Due Premium
Section 1131.857. Individual Premium Rate Increase
Section 1131.858. Premium Rate Change Not Limited
Section 1131.859. Limitations on Continuation of Coverage
Section 1131.860. Other Provisions; Commissioner Approval Required