Texas Administrative Code
Title 28 - INSURANCE
Part 1 - TEXAS DEPARTMENT OF INSURANCE
Chapter 3 - LIFE, ACCIDENT, AND HEALTH INSURANCE AND ANNUITIES
Subchapter B - INDIVIDUAL LIFE INSURANCE POLICY FORM CHECKLIST AND AFFIRMATIVE REQUIREMENTS
Section 3.109 - Automatic Premium Loans
Universal Citation: 28 TX Admin Code § 3.109
Current through Reg. 50, No. 13; March 28, 2025
(a) Automatic premium loans do not constitute a stipulated form of insurance, and the automatic premium loan provision must not be classified as a nonforfeiture value. Provisions for automatic premium loans must be revocable at the option of the owner of the policy.
(b) If the automatic premium loan provision remains operative after loan values are insufficient to pay the next premium or installment thereof, the policy must define the premium rate to be charged in such a manner as to make possible the determination of the expiry date of the coverage.
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