Tex. Insurance Code § 425.071
This is the official text of Tex. Insurance Code § 425.071, part of Texas’s Insurance Code — regulates insurance companies and the policies they sell.
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§ 425.071. LAPSE RATES IN MINIMUM STANDARD OF VALUATION.
Official statutory text
(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.
(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.
Status: in_force · Read it on the official government site
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