§ 1114.002 — GENERAL DEFINITIONS.

Texas § 1114.002

• Jurisdiction: Texas
• Code IN: Insurance Code

Text

Sec. 1114.002. GENERAL DEFINITIONS. In this chapter:
(1) "Agent" means an individual who holds a license under Chapter 4054 and who sells, solicits, or negotiates life insurance or annuities in this state.
(2) "Direct-response solicitation" means a solicitation made:
(A) by a sponsoring or endorsing entity or individually; and
(B) solely through mails, telephone, the Internet, or other mass communication media.
(3) "Existing insurer" means the insurer, the policy or contract of which is or will be changed or affected by a replacement.
(4) "Existing policy or contract" means an individual life insurance policy or annuity contract that is in force, including a policy under a binding or conditional receipt or a policy or contract that is within an unconditional refund period.
(5) "Financed purchase" means the purchase of a new policy that involves the actual or intended use of funds to pay all or part of any premium due on the new policy obtained by:
(A) the withdrawal or surrender of an existing policy; or
(B) borrowing from values of an existing policy.
(6) "Illustration" means a presentation or depiction that includes nonguaranteed elements of a life insurance policy over a period of years.
(7) "Registered contract" means a variable annuity contract or variable life insurance policy subject to the prospectus delivery requirements of the Securities Act of 1933 (15 U.S.C. Section 77a et seq.).
(8) "Replacement" means a transaction under which a new policy or contract is to be purchased, and for which it is known or should be known to the proposing agent or proposing insurer that, by reason of the transaction, an existing policy or contract has been or is to be:
(A) lapsed, forfeited, surrendered or partially surrendered, assigned to a replacing insurer, or otherwise terminated;
(B) converted to reduced paid-up insurance, continued as extended term insurance, or otherwise reduced in value by the use of nonforfeiture benefits or other policy values;
(C) amended so as to effect a reduction in benefits or in the term for which coverage would otherwise remain in force or for which benefits would be paid;
(D) reissued with any reduction in cash value; or
(E) used in a financed purchase.
(9) "Replacing insurer" means the insurer that issues or proposes to issue a new policy or contract that:
(A) replaces an existing policy or contract; or
(B) is a financed purchase.
(10) "Sales material" means a sales illustration and any other written, printed, or electronically presented information:
(A) created or completed or provided by the insurer or agent; and
(B) used in the presentation to the policy or contract owner relating to the policy or contract purchased.

Legislative History

Added by Acts 2007, 80th Leg., R.S., Ch. 904 (H.B. 2762 ), Sec. 1, eff. September 1, 2007.