Sec. 425.071. LAPSE RATES IN MINIMUM STANDARD OF VALUATION. (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.
Added by Acts 2007, 80th Leg., R.S., Ch. 681 (H.B. 1590), Sec. 1, eff. June 15, 2007.
Structure Texas Statutes
Title 4 - Regulation of Solvency
Subtitle B - Reserves and Investments
Chapter 425 - Reserves and Investments for Life Insurance Companies and Related Entities
Subchapter B. Standard Valuation Law
Section 425.054. Actuarial Opinion of Reserves Issued Before Operative Date of Valuation Manual
Section 425.0545. Actuarial Opinion of Reserves After Operative Date of Valuation Manual
Section 425.055. Supporting Memorandum for Actuarial Opinion
Section 425.056. Limitation on Liability for Actuarial Opinion
Section 425.057. Disciplinary Action: Company or Person Certifying Opinion
Section 425.058. Computation of Minimum Standard: General Rule
Section 425.059. Computation of Minimum Standard for Certain Annuities and Pure Endowment Contracts
Section 425.060. Applicability of Calendar Year Statutory Valuation Interest Rates
Section 425.061. Computation of Calendar Year Statutory Valuation Interest Rate: General Rule
Section 425.062. Weighting Factors
Section 425.063. Reference Interest Rate
Section 425.064. Commissioners Reserve Valuation Method for Life Insurance and Endowment Benefits
Section 425.066. Minimum Aggregate Reserves
Section 425.067. Optional Reserve Computations
Section 425.068. Reserve Computation: Gross Premium Charged Less Than Valuation Net Premium
Section 425.069. Reserve Computation: Indeterminate Premium Plans and Certain Other Plans
Section 425.070. Computation of Reserve for Certain Policies by Calendar Year of Issue
Section 425.071. Lapse Rates in Minimum Standard of Valuation
Section 425.072. Minimum Standard for Accident and Health Insurance Contracts
Section 425.074. Requirements of a Principle-Based Valuation