28 Tex. Admin. Code § 4.625 - Premiums Paid in Advance
(a) The policy may
contain provisions under which the company will accept advance payments of
premiums; but in no event may the company undertake to accept deposits that
would exceed the maximum amount required to pay all future premiums that will
become due under the policy, including any options contained in the policy. The
contract may permit the insured to withdraw excess deposits in cash, but any
provisions that would cause a forfeiture of principal or exact a surrender
charge are prohibited. The contract must state the interest rate used to
discount the future premiums and must provide for disposition of any unused
premiums on surrender of the contract or death of the insured.
(b) This section is not applicable to single
premium policies.
Notes
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