Bill Text: TX HB2927 | 2013-2014 | 83rd Legislature | Introduced

---

Bill Title: Relating to the nonforfeiture requirements of certain life insurance policies.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2013-04-23 - Left pending in committee [HB2927 Detail]

Download: Texas-2013-HB2927-Introduced.html

---

83R7954 TJS-F
By: Sheets H.B. No. 2927

A BILL TO BE ENTITLED
AN ACT
relating to the nonforfeiture requirements of certain life
insurance policies.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter A, Chapter 1105, Insurance Code, is
amended by adding Section 1105.0015 to read as follows:
Sec. 1105.0015. DEFINITION. In this chapter, "operative
date of the valuation manual" means the date, if any, on which the
valuation manual described by Chapter 425 becomes operative as
provided by that chapter.
SECTION 2. Section 1105.055, Insurance Code, is amended by
amending Subsections (h) and (i) and adding Subsections (j), (k),
(l), and (m) to read as follows:
(h) For a policy issued before the operative date of the
valuation manual, any [Any] ordinary mortality table adopted after
1980 by the National Association of Insurance Commissioners that is
approved by rules adopted by the commissioner for use in
determining the minimum nonforfeiture standard may be substituted
for:
(1) the Commissioners 1980 Standard Ordinary
Mortality Table with or without Ten-Year Select Mortality Factors;
or
(2) the Commissioners 1980 Extended Term Insurance
Table.
(i) For a policy issued before the operative date of the
valuation manual, any [Any] industrial mortality table adopted
after 1980 by the National Association of Insurance Commissioners
that is approved by rules adopted by the commissioner for use in
determining the minimum nonforfeiture standard may be substituted
for:
(1) the Commissioners 1961 Standard Industrial
Mortality Table; or
(2) the Commissioners 1961 Industrial Extended Term
Insurance Table.
(j) Except as provided by Subsection (k), for a policy
described by Subsection (h), on or after the operative date of the
valuation manual, the valuation manual must provide the
commissioners' standard ordinary mortality table for use in
determining the minimum nonforfeiture standard that may be
substituted for:
(1) the Commissioners 1980 Standard Ordinary
Mortality Table with or without Ten-Year Mortality Factors; or
(2) the Commissioners 1980 Extended Term Insurance
Table.
(k) If the commissioner by rule adopts a commissioners'
standard ordinary mortality table adopted by the National
Association of Insurance Commissioners for use in determining the
minimum nonforfeiture standard for policies issued on or after the
operative date of the valuation manual, the minimum nonforfeiture
standard determined in accordance with that table supersedes the
standard provided by the valuation manual.
(l) Except as provided by Subsection (m), for a policy
described by Subsection (i), on or after the operative date of the
valuation manual, the valuation manual must include the
commissioners' standard industrial mortality table for use in
determining the minimum nonforfeiture standard that may be
substituted for:
(1) the 1961 Standard Industrial Mortality Table; or
(2) the Commissioners 1961 Industrial Extended Term
Insurance Table.
(m) If the commissioner by rule adopts a commissioners'
standard industrial mortality table adopted by the National
Association of Insurance Commissioners for use in determining the
minimum nonforfeiture standard for policies issued on or after the
operative date of the valuation manual, the minimum nonforfeiture
standard determined in accordance with that table supersedes the
standard provided by the valuation manual.
SECTION 3. Section 1105.056, Insurance Code, is amended to
read as follows:
Sec. 1105.056. NONFORFEITURE INTEREST RATE. (a) For a
policy issued before the operative date of the valuation manual,
the [The] annual nonforfeiture interest rate for a policy issued in
a particular calendar year is equal to 125 percent of the calendar
year statutory valuation interest rate for that policy as defined
by Subchapter B, Chapter 425, rounded to the nearest one-fourth of
one percent.
(b) For a policy issued on or after the operative date of the
valuation manual, the nonforfeiture per year for any policy issued
in a particular calendar year is provided by the valuation manual.
SECTION 4. The commissioner of insurance may not implement
this Act before the operative date of the valuation manual
described by Section 1105.0015, Insurance Code, as added by this
Act.
SECTION 5. This Act takes effect only if an Act of the 83rd
Legislature, Regular Session, 2013, that amends Chapter 425,
Insurance Code, to authorize the commissioner of insurance to adopt
a standard valuation manual and provide an operative date for that
manual is enacted and becomes law. If an Act of the 83rd
Legislature, Regular Session, 2013, amending Chapter 425,
Insurance Code, to authorize the commissioner of insurance to adopt
a standard valuation manual and provide an operative date for that
manual does not become law, this Act has no effect.
SECTION 6. This Act takes effect January 1, 2014.