28 Tex. Admin. Code § 4.1010 - Artificial Maximum Premiums Prohibited
(a) No insurer may incorporate an increment
into a maximum premium in an indeterminate premium reduction policy in order to
be able to show an increased reduction in later policy years or to reduce cash
values, if any, as provided in Insurance Code Chapter 1105, concerning Standard
Nonforfeiture Law for Life Insurance, or reserves as provided in Insurance Code
Chapter 425, Subchapter B, concerning Standard Valuation Law.
(b) As a condition precedent to policy form
approval, there must accompany each submission of an indeterminate premium
reduction policy a certification by a qualified actuary to the following: that
the maximum premiums specified in the policy do not incorporate an increment as
specified in subsection (a) of this section. An approval of a policy form after
receipt of the foregoing certification may not be construed as a determination
by the Texas Department of Insurance that the certification is true and
accurate.
Notes
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