Texas Insurance Code 425.122 – Authorized Investments: Premium Loans
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(a) Subject to Subsection (b), an insurance company may make loans to finance the payment of premiums for the company’s own insurance policies or annuity contracts.
(b) The amount of a loan under this section may not exceed the sum of:
(1) the available cash value of the insurance policy or annuity contract for which the premium loan is made; and
(2) the amount of any escrowed commissions payable relating to the insurance policy or annuity contract.
Terms Used In Texas Insurance Code 425.122
- Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
- Contract: A legal written agreement that becomes binding when signed.