28 Tex. Admin. Code § 3.301 - Purpose and Scope
(a) This subchapter is
promulgated to regulate life insurance policies which have the following
characteristics:
(1) the premium for the
policy is guaranteed for an initial period of time but subsequent to such
initial period, a maximum premium charge is specified in the policy;
thereafter, the insurer reserves the right to charge a lesser unspecified
amount (this type of policy is hereinafter referred to as "an indeterminate
premium reduction policy");
(2) one
of the purposes of the policy is to provide insureds with insurance coverage at
a lower initial premium than would be obtainable from the insurer if the
premiums were required to be unchangeable by the insurer for the life of the
policy.
(b) A major
purpose of this subchapter is to promote an accurate presentation and
description to the insurance-buying public of the indeterminate premium
reduction policy. Adequate disclosure is one of the principal objectives of the
sections. The sections attempt to ensure that prospective insureds receive a
fair, adequate, and accurate impression of the true nature of the indeterminate
premium reduction policy. Some of the sections also give notice of certain
legal interpretations. The sections are supplementary to and cumulative of
other statutes and rules including those promulgated under authority of
Insurance Code Chapter 541. This subchapter is applied and interpreted in
accordance with the foregoing purposes.
Notes
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