CHAPTER 1102. PAYMENT OF INSURANCE BENEFITS IN CURRENCY - Texas Statutes

INSURANCE CODE

TITLE 7. LIFE INSURANCE AND ANNUITIES

SUBTITLE A. LIFE INSURANCE IN GENERAL

CHAPTER 1102. PAYMENT OF INSURANCE BENEFITS IN CURRENCY

Sec. 1102.001. DEFINITIONS. In this chapter:

(1) "Insurance policy" means a policy, certificate, or contract

of:

(A) life, term, or endowment insurance, including an annuity or

pure endowment contract;

(B) group life or term insurance, including a group annuity

contract;

(C) industrial life insurance;

(D) accident or health insurance;

(E) group accident or health insurance;

(F) hospitalization insurance;

(G) group hospitalization insurance;

(H) medical or surgical insurance;

(I) group medical or surgical insurance; or

(J) fraternal benefit insurance.

(2) "Insurer" means any insurer, including a:

(A) life, accident, health, or casualty insurance company;

(B) mutual life insurance company;

(C) mutual insurance company other than a life insurance

company;

(D) mutual or natural premium life insurance company;

(E) general casualty company;

(F) Lloyd's plan or a reciprocal or interinsurance exchange;

(G) fraternal benefit society; or

(H) group hospital service corporation.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 2, eff. June 1,

2003.

Sec. 1102.002. BENEFITS PAYABLE IN CURRENCY. Each benefit

payable under an insurance policy delivered, issued, or used in

this state by an insurer shall be payable in currency.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 2, eff. June 1,

2003.

Sec. 1102.003. STATEMENT REGARDING VALUE OF FOREIGN CURRENCY.

(a) An insurance policy described by Section 1102.002 providing

that benefits are payable in foreign currency must include a

conspicuous statement that the value of the currency denominated

in the policy can fluctuate as compared to the value of United

States currency.

(b) The statement must be:

(1) included as part of the policy; or

(2) attached to the insurance policy at the time it is issued.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 2, eff. June 1,

2003.

Sec. 1102.004. PREVIOUSLY APPROVED INSURANCE POLICY FORM PAYABLE

IN FOREIGN CURRENCY. (a) The commissioner may disapprove or

withdraw approval of a previously approved insurance policy form

that provides benefits payable in foreign currency if the

commissioner determines that the foreign currency has been less

stable than United States currency in the previous 20-year

period.

(b) This section does not require the resubmission for approval

of any previously approved insurance policy form unless:

(1) withdrawal of approval is authorized under this section or

Chapter 1701; or

(2) after notice and hearing, the commissioner determines that

approval was obtained by improper means, including by

misrepresentation, fraud, or a misleading statement or document.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 2, eff. June 1,

2003.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

730, Sec. 2F.003, eff. April 1, 2009.

Sec. 1102.005. RULES. The commissioner may adopt reasonable

rules to accomplish the purposes of this chapter, including rules

requiring:

(1) appropriate reserves for insurance policies subject to this

chapter; or

(2) prudent investment of premiums collected from insurance

policies subject to this chapter regardless of any other

provision of this code related to the investment of money by an

insurance company.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 2, eff. June 1,

2003.