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Texas Insurance Code - Section 425.059. Valuation Of Certain Annuities And Pure Endowment Contracts

Legal Research Home > Texas Lawyer > Insurance Code > Texas Insurance Code - Section 425.059. Valuation Of Certain Annuities And Pure Endowment Contracts

§ 425.059. VALUATION OF CERTAIN ANNUITIES AND PURE 
ENDOWMENT CONTRACTS.  (a) This section applies to an individual 
annuity or pure endowment contract issued on or after January 1, 
1979, and an annuity or pure endowment purchased on or after January 
1, 1979, under a group annuity or pure endowment contract.  This 
section also applies to an annuity or pure endowment contract 
issued by an insurer after the date specified in a written notice:
		(1)  that was filed with the State Board of Insurance 
after June 14, 1973, but before January 1, 1979;  and
		(2)  under which the insurance company filing the 
notice elected to comply before January 1, 1979, with former 
Section 4, Article 3.28, with respect to individual or group 
annuities and pure endowment contracts as specified by the company 
in the notice.
	(b)  Except as provided by Section 425.060, 425.061, 
425.062, or 425.063, the minimum standard for the valuation of an 
individual or group annuity or pure endowment contract, excluding 
any disability or accidental death benefits in the contract, is the 
commissioners reserve valuation method described by Sections 
425.064 and 425.065, computed using the table prescribed by this 
section and with interest at the following interest rate, as 
applicable:
		(1)  for an individual annuity or pure endowment 
contract issued before August 29, 1977, other than an individual 
single premium immediate annuity contract, four percent;
		(2)  for an individual single premium immediate annuity 
contract issued before August 29, 1977, six percent;
		(3)  for an individual annuity or pure endowment 
contract issued on or after August 29, 1977, other than an 
individual single premium immediate annuity contract or an 
individual single premium deferred annuity or pure endowment 
contract, 4-/2 percent;
		(4)  for an individual single premium immediate annuity 
contract issued on or after August 29, 1977, 7-1/2 percent;
		(5)  for an individual single premium deferred annuity 
or pure endowment contract issued on or after August 29, 1977, 5-1/2 
percent;
		(6)  for an annuity or pure endowment purchased before 
August 29, 1977, under a group annuity or pure endowment contract, 
six percent;  or
		(7)  for an annuity or pure endowment purchased on or 
after August 29, 1977, under a group annuity or pure endowment 
contract, 7-1/2 percent.
	(c)  For an individual annuity or pure endowment contract 
issued before August 29, 1977, the applicable table is:
		(1)  the 1971 Individual Annuity Mortality Table;  or                         
		(2)  a modification of that table approved by the 
commissioner.             
	(d)  For an individual annuity or pure endowment contract 
issued on or after August 29, 1977, including an individual single 
premium immediate annuity contract, the applicable table is:
		(1)  the 1971 Individual Annuity Mortality Table;                             
		(2)  an individual annuity mortality table adopted 
after 1980 by the National Association of Insurance Commissioners 
that is approved by the commissioner by rule for use in determining 
the minimum standard of valuation for a specified type of contract 
to which this subsection applies;  or
		(3)  a modification of one of those tables approved by 
the commissioner.    
	(e)  For an annuity or pure endowment purchased before August 
29, 1977, under a group annuity or pure endowment contract, the 
applicable table is:
		(1)  the 1971 Group Annuity Mortality Table;  or                              
		(2)  a modification of that table approved by the 
commissioner.             
	(f)  For an annuity or pure endowment purchased on or after 
August 29, 1977, under a group annuity or pure endowment contract, 
the applicable table is:
		(1)  the 1971 Group Annuity Mortality Table;                                  
		(2)  a group annuity mortality table adopted after 1980 
by the National Association of Insurance Commissioners that is 
approved by the commissioner by rule for use in determining the 
minimum standard of valuation for an annuity or pure endowment to 
which this subsection applies;  or
		(3)  a modification of one of those tables approved by 
the commissioner.    

Added by Acts 2005, 79th Leg., ch. 727, § 1, eff. April 1, 2007.           

Last modified: August 11, 2007