28 Tex. Admin. Code § 4.1110 - Calculation of Reserves
(a) Reserves for an
acceleration-of-life-insurance benefit must be based on tables of disablement,
morbidity, or mortality appropriate for determining liability for the benefits
provided. Such disablement or morbidity tables must be certified as appropriate
by a member of the American Academy of Actuaries and approved by the Texas
Department of Insurance under Insurance Code §
425.058(k),
concerning Computation of Minimum Standard: General Rule, and §425.069,
concerning Reserve Computation: Indeterminate Premium Plans and Certain Other
Plans. Reserves for the death benefits or other supplementary benefits provided
by a life insurance contract that includes an acceleration-of-life-insurance
benefit must be calculated disregarding such benefit, using mortality and
interest rates as provided in Insurance Code Chapter 425, concerning Reserves
and Investments for Life Insurance. The basis of reserves for any life
insurance contract that contains an acceleration-of-life-insurance benefit
provision must accompany the filing of the contract with the Texas Department
of Insurance.
(b) Reserves for an
acceleration-of-life-insurance benefit under the lien method for determining
benefits under §
4.1106(3) of
this title (relating to Methods for Determining Benefits and Allowable Charges
and Fees), including accrued interest, represent assets of the company for
statutory reporting purposes. For any life insurance contract on which the lien
exceeds the policy's statutory reserve liability, such excess must be held as a
non-admitted asset.
Notes
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