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Texas Insurance Code - Section 425.067. Optional Reserve Computations

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§ 425.067. OPTIONAL RESERVE COMPUTATIONS.  (a) Reserves 
for a policy or contract issued by a life insurance company before 
the date on which Chapter 1105 would apply to the policy or 
contract, as determined under Section 1105.002(a) or (b), may be 
computed, at the company's option, according to any standard that 
produces greater aggregate reserves for all those policies and 
contracts than the minimum reserves required by the laws applicable 
to those policies and contracts immediately before that date.
	(b)  Reserves for any category, as established by the 
commissioner, of policies, contracts, or benefits issued by a life 
insurance company on or after the date on which Chapter 1105 applies 
to policies, contracts, or benefits issued by the company, as 
determined under Section 1105.002(a) or (b), may be computed, at 
the company's option, according to any standard that produces 
greater aggregate reserves for the category than the minimum 
aggregate reserves computed according to the standard provided by 
this subchapter, but the interest rate or rates used for those 
policies and contracts, other than annuity and pure endowment 
contracts, may not be higher than the corresponding interest rate 
or rates used in computing any nonforfeiture benefits provided in 
those policies or contracts.
	(c)  An insurance company that has adopted a standard of 
valuation that produces greater minimum aggregate reserves than the 
aggregate reserves computed according to the standard provided by 
this subchapter may, with the commissioner's approval, adopt any 
lower standard of valuation that produces aggregate reserves at 
least equal to the minimum aggregate reserves computed according to 
the standard provided by this subchapter.
	(d)  For purposes of this section, the holding of additional 
reserves previously determined to be necessary to issue a favorable 
opinion under Section 425.054 may not be considered to be the 
adoption of a higher standard of valuation.

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

Last modified: August 11, 2007