28 Tex. Admin. Code § 4.1001 - Purpose and Scope
(a) This subchapter is
promulgated to regulate life insurance policies that have the following
characteristics:
(1) the premium for the
policy is guaranteed for an initial period of time but after 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"); and
(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, concerning Unfair Methods of Competition and Unfair
or Deceptive Acts or Practices. This subchapter is applied and interpreted in
accordance with the foregoing purposes.
Notes
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