28 Tex. Admin. Code § 3.109 - Automatic Premium Loans
(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.
Notes
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